Market Analytics and Considerations
Key Notes
Rates on 6-month and 1-year Treasury bills jumped above 4.8% on Thursday as traders reacted to strong ADP jobs data and comments from one policy maker suggesting the Federal Reserve will remain in rate-hiking mode.
The policy-sensitive 2-year rate, TMUBMUSD02Y, which rose 10 basis points to 4.47percentage points after statistics suggests 235,000 private-sector jobs were added in December as well as Kansas City Fed President Esther George stated “ she perceives interest rates above 5percentage points for certain time, actually drove yields from across Treasury curve in midday trading.
The margin between both the 2- and 10-year rates narrowed to negative 70 basis points as the Treasury curve progressively inverted. The Fed Funds Rate Aim, which is now within 4.25percentage points and 4.5%, will most likely reach 5percent or more by March, according to traders.