The yield on two-year US Treasury bonds rose above 4.2% during Friday trading for the first time in 15 years, as investors assess the Federal Reserve’s recent interest rate hike and its impact on the economy going forward. As for the US data, the September Manufacturing and Services PMI is due later today, giving markets a preview of the economic performance of the manufacturing and services sector this month.
PMI data is used as a leading indicator of inflation and recession fears as it reflects the growth or contraction of industries, as well as supply and demand. Markets are also looking ahead to statements from Federal Reserve Chairman Jerome Powell during the day after the central bank raised US interest rates by 75 basis points earlier in the week in an attempt to curb inflation.
The 2-year US Treasury yield rose 13.2 basis points to 4.259% at 2:31 pm Beirut time, the highest level since 2007, while the 10-year yield rose 9.3 basis points to 3.801%.
Source: El Iktisad