Treasury yields surge
On Monday, treasury prices soared, thus bringing revenues to their largest one-day leap for a week. That’s probalby becasuse rate-hike expectations surged after the Fed’s two officials indicated a possibilty of an interest rate increase in April.
John Williams, San Francisco Fed President told he would vote for April’s rate hike if the economic data keeps performing in the expected way.
Notwithstanding the increase in revenues, the vast majority of financial analysts are assured that treasury profits will stay low for a long time.
On Monday, many traders sold government debt to derive benefits from a previous five-session surge.
In terms of performance, last week appeared to be one of the strongest, following the Fed’s intention to keep its rates intact and a recent projection of fewer rate surges.
Despite Monday’s soar, revenues are expected to remain quite low, because market participants reposition their bond portfolios, thus preparing themselves for fewer rate hikes in 2016.
The US treasuries gained 5 basis points, as Tradeweb states.