The 30-year yield also hit a milestone on Tuesday, rising to 3.81%, the highest since January 2014. The yield then rose 10.5 basis points to 3.799%. “It looks like we’re in the midst of melting profitability. The ratings go so far as to sound relatively attractive.”said Joseph Kalish, chief global macroeconomic strategist at Ned Davis Research.
“As we’ve noted before, returns tend to peak before the end of the tightening cycle. We haven’t made it to the end of the cycle, but we can get there early next year,” he added.
Chicago Fed President Charles Evans and St. Louis Fed President James Bullard discussed the need to continue raising interest rates on Tuesday. A closely watched portion of the US Treasury yield curve, which measures the difference between yields on two-year and 10-year Treasuries, remained inverted at -36.2 basis points.
An inversion of the yield curve is widely considered a harbinger of a recession. The 2-year US Treasury yield, which usually moves according to interest rate expectationsAnd the It fell 2.7 basis points to 4.283%After hitting a 15-year high of 4.312% on Monday.