US Treasury bond futures have declined to their lowest levels of the trading session after the release of May job openings data that surpassed market forecasts.
Yields on US government bonds have risen across the board, with short- and intermediate-term yields climbing by as much as 3 basis points. The yield on the 10-year Treasury note has moved back up to around 4.4%, though it still trails the yield on the German 10-year bund by approximately 2.5 basis points.
Overnight index swaps have remained steady, with pricing now implying a cumulative total of about 36 basis points in interest rate hikes by the end of this year. This is an increase from the 34 basis points anticipated at Thursday's market close.
For the July Federal Reserve policy meeting, market pricing continues to factor in a premium of roughly 9 basis points, which equates to an implied probability of about 35% for a 25-basis-point rate increase.
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