In a recent report, it was confirmed that money simple squeeze out of the Treasury market this week, thereby affecting investors’ confidence. It was reported that the yield on the 10-year Treasury moved up by 2.03% late Monday to 2.27% late Wednesday. This caused the benchmark lending rate for mortgages and other loans to jump higher.
“Shifting expectations away from persistent Fed accommodation marks a notable turn in the interest rate outlook”, said Jeffrey Rosenberg, chief investment strategist for fixed income at BlackRock Inc., who is of the view that this shift could push the yields from the position it is now.
Moreover, it was seen that yields on 2-year note moved up in the range last seen in the month of July, as it started with a yield at 0.33% and then moved to 0.37% late Friday. Looking at the gravity of the market, it is being recommended that investors must go for corporate bonds and asset-backed securities like mortgage bonds instead of putting all their money in the Treasury bond market.
With gasoline prices pushing the cost of living up, investors are bearing the brunt of dishevel in Treasure market now. It would be interesting to see how long this gloomy market would haunt investors.