Treasury yields retreat after rate hike expectations drop

The Ten-year US Treasury yields have declined since the opening of daily trading on Thursday, affected by the decline in interest rate expectations after the emergence of fresh US employment data to denote a direct relationship between interest rate hike expectations and ten-year US Treasury yields.

US Treasury yields for ten years fell to 3.644% compared to the closing recorded in the previous session at 3.635%. Revenues rose to their highest level at 3.644%, compared to the lowest levels, which recorded 3.579%.

And weekly jobless claims rose in the United States to 196 thousand claims in the week ending on the third of last February, compared to the previous reading, which recorded 183 thousand claims, below markets’ expectations of 190 thousand claims.

The total number of beneficiaries of US unemployment benefits rose to 1.688 million in the week ending January 27, compared to the previous reading of 1.650 million beneficiaries, which came higher than the market expectations that indicated 1.658 million beneficiaries.

Jerome Powell, Fed Chair repeated what he said in the press conference that took place after the announcement of the federal rate hike decision last week, that “if the data comes out stronger than the markets’ expectations, we will raise the interest to higher levels than the expectations indicate,” in the speech he made before the Washington Economic Club, Wednesday, which reflected negatively on expectations of more rate hikes, then the benchmark US bond yields.