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Find all the economic and financial information on our Orishas Direct application to download on Play StoreThe US Treasury recorded on Wednesday a further decline in bond yields. The rate of the ten-year title fell to 1.541% at 7:40 a.m.
Yields on US Treasury bonds continue to slide against the yield on the stock which fell after hovering around 1.60% on Monday.
Investors are more worried about a possible overheating of the economy and inflationary pressures which, if they materialize, could force the Federal Reserve (Fed) to raise interest rates sooner than expected. A rise in the federal funds rate could affect the value of government bonds and push up their yields.
The US Treasury conducted a $58 billion three-year bond auction on Tuesday, which attracted strong demand. Treasury bond issues will hold investors' attention this week. Two weeks ago, a poorly received auction of seven-year securities had caused the yield on the ten-year Treasury note to exceed 1.60% for the first time since the start of the Covid-19 pandemic.
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