Treasury yields fell again on Wednesday, as markets awaited housing sector data and paid close attention to earnings reports.
Treasury yields fell again on Wednesday, as markets awaited housing sector data and paid close attention to earnings reports, scanning the numbers for hints about a looming recession.yield was last down by close to seven basis points to 4.0421%. The benchmark note has come off the 14 year highs it was trading around just last week, when it soared as high as 4.3%.Yields and price move in opposite directions and one basis point equals 0.01%.
However, data published last week showed existing home sales had declined in September. Talks about a housing recession have been spreading as the sector is highly sensitive to interest rates. The Federal Reserve has consistently been hiking rents in an effort to push back against persistent inflation, with a further 75 basis point hike expected to be implemented at the central bank's next meeting on Nov. 1 and 2. Some investors have been concerned about the impact this may have on the U.S. economy.
Traders have therefore also been paying close attention to earnings reports and estimates for the coming months, as they scan them for hints on companies' economic outlooks. Among those reporting on Wednesday are Meta and Coca Cola.