On Tuesday, treasury yields increased, with long-term fixed income reaching their highest point in over twenty years due to worsening U.S. fiscal conditions and sustained higher inflation.
U.S. 30-year Treasury yields rose by 2 basis points to approximately 5.33%, approaching the highest levels seen since 2002.
The 10-year Treasury note yield increased by 1.6 basis points to 4.74%.
The 2-year Treasury note yield increased slightly to 4.186%.
The moves come after news that the U.S. fiscal deficit reached $432.3 billion in July, the highest for that month since March 2021, bringing the year-to-date shortfall to nearly $1.8 trillion. Interest on the nearly $40 trillion national debt has cost about $1.2 trillion this year.
On Tuesday, oil prices increased as the 60-day deadline for the U.S. and Iran to reach a peace agreement expired on Monday. Iran stated there would be no extension, according to state media.
US stock futures fell on Tuesday, with Dow futures remaining unchanged, S&P 500 futures dropping 0.4%, and Nasdaq-100 futures falling 1.1%.
On the inflation side, recent readings show low overall price increases in June and July, but the annual rate remains well above the Fed’s 2% target.
By CEO NA Editorial Staff
