The war between Russia and Ukraine continued to worsen, and U.S. Treasury yields fell across the board on Friday (4th), making the 2-year and 10-year bond yields their biggest weekly decline since March 2020.
MarketWatch quotes show that at the end of the New York bond market on the 4th, the U.S. 2-year bond yield, which is more sensitive to the Federal Reserve’s (Fed) interest rate policy, fell 4.4 basis points to 1.490%, and fell 9.4 basis points in the past week. The biggest drop since the week of March 27.
The 10-year bond yield tumbled 12.1 basis points to 1.722%, and fell 26.2 basis points in the past week, the largest weekly drop since March 6, 2020; the 30-year bond yield fell 7.7 basis points to 2.148%, It was down 14.6 basis points over the past week, its biggest weekly drop since Dec. 3, 2021 (treasury prices and yields moved in opposite directions).
As the conflict between Russia and Ukraine escalated, the Russian army attacked Europe’s largest nuclear power plant in Ukraine with artillery fire and gained control, triggering a flow of funds to safe-haven assets such as US bonds, offsetting the bullish news of the dazzling non-farm payrolls figures in February.
Data released on Friday showed that U.S. nonfarm payrolls increased by 678,000 in February 2022, far better than the 440,000 predicted by the Wall Street Journal survey; the unemployment rate fell from 4% in January to 3.8%, which is also good. 3.9% of the consensus forecast.
At the same time, the average hourly wage in February was US$31.58, with a monthly growth rate of only 0.03% and an annual growth rate of 5.13%, far lower than market expectations of 0.5% and 5.8%, indicating that inflationary pressures in the United States may be easing.
The market generally believes that the Fed is about to start a cycle of rate hikes as the U.S. labor market returns to strength. Last Wednesday (2nd), Fed Chairman Powell (Jerome Powell) attended a congressional hearing and clearly expressed his support for raising interest rates by 1 yard in the March meeting, and then carrying out a series of interest rate hikes this year, making overcoming inflation a priority. Target.