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Geopolitical Risk Tilts Real Yields Lower Into Weekend

US TSYS

It has been a bumpy week for U.S. real yields, with geopolitical risks (and related oil price swings), softer Fedspeak re: the prospect of further rate hikes, firmer than expected U.S. CPI data and 3 tailing Tsy coupon auctions providing the more meaningful inputs.

  • Geopolitical angst centred on the potential for further escalation in the Israeli-Palestinian conflict tilts real yields lower into the weekend.
  • That leaves our weighted U.S. real yield monitor a little shy of the closing highs seen at the back end of last week.
  • A reminder that last week's closing highs represented the highest closes witnessed since early ‘09.

Fig. 1: Weighted U.S. Real Yield (%)

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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