Volatile, Wall Street hesitates between green and red after dropping out the day before
January 6, 2022Treasury selloff takes a breather ahead of December jobs report
January 7, 2022Treasury yields extend their climb as investors adjust to yesterday’s Fed minutes, which more clearly pointed to a March rate liftoff. In a mitigating factor, weekly jobless claims come in above expectations. The 10-year is at 1.728%, off early highs reached before the job data. The benchmark is up from Wednesday’s 1.703%. The Treasury selloff seems to stem from portfolio adjustments to more hawkish times, with the Fed quickly removing demand for government debt. Spartan’s Peter Cardillo says the run up “appears to be an overexaggerated move as shorts run for cover…That’s not to say that by May – June we are probably looking at 2.05% on the 10 year.”