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U.S. 2-year Treasury yield hits 15-year high

On September 13, the U.S. 2-year government bond yield again climbed to a new high since November 2007, as the consumer price index (CPI) in August broke the marked slowdown in inflation and strengthened the market's continued aggressiveness of the Federal Reserve. expectations of rate hikes.

MarketWatch quotes show that at the end of the New York bond market on the 13th, the U.S. 2-year bond yield, which is more sensitive to the Federal Reserve’s (Fed) interest rate policy, surged 18.3 basis points to 3.754%, the largest single-day increase since August 5. It is also the highest since November 1, 2007.

The 10-year yield rose 6.1 basis points to 3.422 percent, its biggest one-day gain since Sept. 6 and its highest since June 14, while the 30-year yield fell 0.7 basis points to 3.506 percent.

According to Tradeweb data, the U.S. 5-year anti-inflation bond (TIPS) yield rose to 1.02% from 0.955% on the 12th, the highest since December 2018, and the 10-year TIPS yield rose from 0.948% on the 12th. to 0.975%, hitting a new high since January 2019.

The U.S. Labor Department announced on the 13th that the CPI in August increased by 0.1% month-on-month and 8.3% year-on-year, both higher than the 0.1% month-on-month and 8% year-on-year increase expected by the Dow Jones survey. In July, the CPI was unchanged from the previous month, with an annual growth rate of 8.5%.

More worryingly, there are signs that inflation has spread further into the services sector. Excluding food and energy items with high price volatility, the core CPI rose 0.6% in August, double the 0.3% increase in July.
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