Treasury yields increase as investors prepare for 2023.
Treasury yields increased on Friday as traders looked forward to 2023 and weighed the headwinds that markets could encounter in the coming year.
Ten-year Treasury yields the highest. Treasury
The note was trading up nearly two basis points, to 3.8520 percent at 4:52 a.m. ET. The 2-year Treasury.
The yield climbed over 3 basis points, and was last traded at 4.4009 percent.
Prices and yields have an inverse relationship. One basis point equals 0.01%.
As the calendar year is drawing to an end, concerns regarding a possible recession, the persistent rise in inflation and what these variables could affect Federal Reserve policies have been impacting investor confidence.
Treasury yields rise as investors look ahead to 2023 https://t.co/bB4az7hMGE
— CNBC (@CNBC) December 30, 2022
This is a reference to what happens if the central bank is going to slow or stop the rate of interest hikes. A lot of investors are worried about the effect of the rate increases imposed by the Fed in 2022 on the overall U.S. economy.
Over the course of the week, many investors have been watching the final few economic data from 2022 to get hints on the outlook for the coming year. On Thursday, the initial employment claims data for the week ended December. 24 were above expectations.
The Chicago Index of Purchasing Managers, which measures the region’s commercial activities, is expected to be released on Friday.
Bond markets will be closed earlier, at 2 p.m. ET on Friday. They will not be open on Monday because of the New Year’s Day holiday.