Treasury yields continue rising as market awaits Fed conference

Treasury yields continue rising as market awaits Fed conference

Aug. 22:

The bond market’s tone was unchanged this morning ahead of the Federal Reserve’s symposium in Jackson Hole later this week. The futures market has now priced in a 47% chance of a rate hike at the Nov. 1 Federal Open Market Committee meeting, but it also sees the Fed reversing that hike by the end of January. Both numbers should be taken with a grain of salt.

This morning, the Dow traded up and Treasury yields were up slightly relative to Monday morning.

Economic calendar

Tuesday, Aug. 22

  • Existing Home Sales

Wednesday, Aug. 23

  • S&P Global Flash US Composite PMI
  • New Home Sales

Thursday, Aug. 24

  • Advance Durable Goods
  • Weekly Initial Jobless Claims

Friday, Aug. 25

  • University of Michigan Consumer Sentiment
  • Fed Chair Jerome Powell is scheduled to speak at 7:05 a.m. PST at the central bank’s annual Jackson Hole Economic Symposium. The topic for the symposium, held Aug. 24 to 26, is “Structural Shifts in the Global Economy.”

Treasury calendar

Wednesday, Aug. 23

  • $16 billion auction of 20-year Treasury bonds
  • $24 billion auction of two-year Floating Rate Notes

Thursday, Aug. 24

  • $8 billion auction of 30-year Treasury Inflation-Protected Securities

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking

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