Treasuries Fall as Hawkish Fed Views Accumulate – US Market Wrap

The world’s largest bond market extended this month’s selloff after strong economic data and hawkish Fedspeak fueled speculation that interest rates will remain high for a while.

Treasuries fell across the US curve, with two-year yields once again approaching 5%. When asked about the possibility of hiking. Fed Bank of New York President John Williams stated that, while it is “not” his baseline expectation, it is possible if warranted. The S&P 500 fell for the fifth consecutive session, its longest losing streak since October.

Treasury 10-year yields increased five basis points to 4.63%. The S&P 500 fell to nearly 5,000, with technology, its most influential sector, leading the declines. Netflix has had its best start to the year since 2020, attracting more new customers than anyone anticipated thanks to a strong slate of original programmes and a crackdown on password sharing.

In addition to Williams’ remarks, his Atlanta counterpart Raphael Bostic said he is comfortable keeping interest rates steady, stating that he does not believe it will be appropriate to lower borrowing costs until near the end of the year.