Authorities bond yields are flat because the Fed eases inflation issues
US Treasury bond yields were unchanged on Wednesday as Fed officials re-formulated cautious views on loose monetary policy and inflation.
The benchmark 10-year Treasury note yield rose 1.3 basis points to 1.577% by 4:00 p.m. ET. The yield on the 30-year government bond remained unchanged at 2.26%. The returns move inversely to the prices. One basis point corresponds to 0.01%.
Auctions were scheduled for Wednesday for $ 35 billion worth of 119-day notes, $ 61 billion worth of 5-year notes, and $ 26 billion of 2-year floating rate notes.
San Francisco Fed President Mary Daly told CNBC on Tuesday that while she was encouraged by the improvement in the economy, it was not time to change policy.
Fed vice chairman Richard Clarida said Tuesday the central bank could cope with rising inflation without affecting US economic recovery
Cole Smead, president and portfolio manager at Smead Capital, told CNBC’s Squawk Box Europe on Wednesday that house prices are key to measuring inflation because they have historically been higher than the consumer price index.
The March S&P CoreLogic Case-Shiller National Home Price Index, released on Tuesday, showed that home prices had risen 13.2% since March 2020.
Smead argued that house prices provided “a better forward indicator of inputs (and) rising labor costs”.