30-year Treasury yield 5breaks through %, Amazon corporate bonds and Hormuz tensions
The U.S. 30-year Treasury yield 5.0broke above %. Long- and short-term yields rose together as Amazon's large-scale corporate bond issuance coincided with news of a vessel being hit in the Strait of Hormuz.
The U.S. 30-year Treasury yield 5.0surpassing % has increased pressure on interest-rate-sensitive assets. Rising yields can affect not only bondholders but also stocks sensitive to interest rates and exchange rates.
A relatively weaker performance by longer-term securities led to an observed steepening of the yield curve. The market calls this a “bear steepening.”
The disclosure that Amazon had issued a large volume of corporate bonds created additional supply pressure in the bond market. Changes in demand for corporate bonds can also spill over to Treasury prices.
News that Iran had struck a merchant vessel near the Strait of Hormuz sent oil prices higher, while demand for safe-haven assets and the risk premium moved at the same time.
7On (U.S. Eastern Time) afternoon, 3the New York bond market was trading with the 10-year yield at 4.5290%, and the 2-year yield at 4.1620%.
As of 9a.m. the same day, 7the 10-year yield stood at 4.497%, while the 2-year yield recorded 4.137%.
Under another trading reference, the 30-year yield stood at 5.011%.
In summary, the issuance of Amazon corporate bonds and geopolitical tensions related to the Strait of Hormuz appear to have been the two factors that drove bond-market prices lower on the same day.
Sources: 연합인포맥스
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