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US rate options signal market can absorb higher Treasury yields
Traders are pricing about 79.5 basis points of annualized volatility, suggesting investors can absorb higher yields as the Federal Reserve keeps rates elevated.
By Gertrude Chavez-Dreyfuss NEW YORK, Sept 17 (Reuters) - Options markets are anticipating few fireworks in 10-year Treasury trading even as the benchmark yield has risen steadily this year to 5%, underscoring the role of strong U.S. economic growth in...
The required yields on 10-year US Treasury bonds have exceeded the 5% mark, what will happen now? Probably nothing shocking, as it is only a psychological limit, but if yields were to remain at these or even higher levels for a longer period of time, the consequences could be even more significant.