US 10y bond yield down to February levels (1.35%)

lower-than-expected ISM in services in June (down from 64 to 60.1) in the US triggered a sharp fall in bond yields. Despite recent tensions on oil prices, the markets really seem to gradually abandon the reflation trade. As shown by the Graph of the day, the US 10y has declined from 1.6% to 1.35% since early June. US economic reports remain good, but do not surprise on the upside anymore. Supply issues are expected to limit the growth potential and the Fed is seen keeping inflation under control. The publication of the Fed Minutes today will allow us to gauge the balance of power between the hawks and the doves.

Despite lower bond yields, the USD is strong against the euro, around 1.182, which also points to markets more cautious regarding growth prospects. US equities were slightly down yesterday (except the Nasdaq), but they have been up over the last few weeks. 

US 10y bond yield
Share this news :

You might also read :

September 22, 2021

European prices weakened slightly

European gas prices weakened slightly yesterday, despite the further rise in Asia JKM prices (+8.10% on the spot, to €80.761/MWh, +1.27% for the November 2021…
June 16, 2022

Oil fell on short term outlook

Yesterday, oil prices closed in red territories: ICE Brent front month closed at $118.51/b, making a 2.2% loss while NYMEX WTI for July delivery went…
June 20, 2022

Oil prices fell heavily on Friday

Oil slumped on Friday: ICE Brent front month dove by 5.6%, to settle at $113.12/b and NYMEX WTI plunged by 6.8% to reach its lowest…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?