Treasury yields of the United States: investors fear the potential recession

The US treasure yields increased on Tuesday when investors waited for the last reading about the consumer price index report.

The reference point 10 -year Treasury Performance It was 5 higher basic points at 4,266%. He 2 -year Treasury Performance It was the last 2 highest basic points at 3.92%, after earlier in the day it fell to its lowest level since October.

A basic point is equal to 0.01%, and yields and prices move in opposite directions.

The large economic data launches of the week are produced in the form of the consumer price index report, Wednesday morning, and the producer’s price index, Thursday morning. Both readings must throw some light on the consumer health of the United States following the recent signs that indicate that the economy may be softening.

These readings are ahead of the March meeting of the Federal Reserve, which will take place from Tuesday to Wednesday from next week.

“It will really be important that we do not see an upward surprise on the CPI because at this point, the Fed has a lot of dry dust to intervene to reduce rates and try to boost demand if the economy slows significantly. But they can only do it if they feel that inflation expectations and inflation are well anchored,” said Ross Mayfield, Baird investment analyst.

Earlier on Tuesday, investors were concerned about the possibility of a recession hitting the economy of the United States, after the president Donald Trump made comments During the weekend, the economy is in a “transition period.”

With the effects of recently implemented tariff policies in global trade, and concerns about the gross domestic product in the first quarter, the president was asked about the possibility of a recession.

“I hate to predict things like that.” Trump said. “Look, let’s have interruptions, but we agree with that.”

That followed the comments of the Secretary of the Treasury, Scott Besent, who told CNBC on Friday that the economy can see one “detoxification period“As the Trump administration reduces federal expenditure.

“President Trump and the Administration have clearly indicated a market pain tolerance in the face of their broader objectives,” Mayfield added. “At this point, I am still in the camp that we are not at the door of a recession, but perhaps a slowdown or growth scare.