Treasurys Sell Off Ahead of Key Fed Decisions

Fed Rate Hike Impact: Big Selloff On Wall Street | Market & Economy Update | Jerome Powell | ET Now
May 5, 2022
Dow as of 5/5/2022
May 6, 2022

Treasurys Sell Off Ahead of Key Fed Decisions

Treasury yields rise across maturities ahead of a highly expected 50-basis point rate increase by the Fed. The 10-year rises to 2.975% from 2.957%. Spartan’s Peter Cardillo says, in a note to clients, that the hike seems to be priced in, so it will be “the amount reduction of [the Fed’s] balance sheet that will sway the markets action.” Investors look for signs of how hawkish the Fed will be, as inflation remains high but the economy shows signs of slowing down, such as ADP saying that US employers created 247K jobs in April, versus consensus of 390K and down from March’s revised 479K openings.