highest level in 16 years, raising borrowing costs for Joe Biden’s administration” bad-src=”https://s.yimg.com/ny/api/res/1.2/vpdinPG7fzYl49jlaw8NEA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTYwMA–/https://media.zenfs.com/en/the_telegraph_258/befe4afb3446b3fe479645a849e05d86″ src=”https://s.yimg.com/ny/api/res/1.2/vpdinPG7fzYl49jlaw8NEA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTYwMA–/https://media.zenfs.com/en/the_telegraph_258/befe4afb3446b3fe479645a849e05d86″/>
US Treasuries have reached their highest level in 16 years, resulting in increased borrowing costs for Joe Biden’s administration - AP Photo/Andrew Harnik
Joe Biden’s US government is facing its highest borrowing costs since before the global financial crisis due to concerns that the Federal Reserve will maintain higher interest rates for a longer period of time.
The yield on 10-year Treasuries has risen to a 16-year high of 4.342%, reflecting recent evidence of a strong US economy.
The coupon on 30-year US bonds has reached its highest level since April 2011, reaching 4.468%. The yield on 10-year UK gilts has increased by five basis points today to 4.71%.
This comes as investors eagerly await comments from Federal Reserve chairman Jerome Powell on Friday at a meeting of central bankers at Jackson Hole in Wyoming, which begins on August 24. He may provide insights into the outlook for interest rates.
Rick Meckler, partner at Cherry Lane Investments, stated: “I don’t think the market is anticipating any statement suggesting that rate hikes are over.
“But…
2023-08-21 10:22:43
Original from finance.yahoo.com
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