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US Treasury yields up on rate hike expectation, growth data; CIMB reports boost Genting Singapore, Yongnam

Michelle Teo
Michelle Teo10/30/2017 08:00 AM GMT+08  • 6 min read
US Treasury yields up on rate hike expectation, growth data; CIMB reports boost Genting Singapore, Yongnam
(Oct 30): Yields on the benchmark US government debt have risen to their highest level in more than six months, ahead of an expected US interest rate hike at year-end. Yields on the 10-year US Treasury bonds rose past 2.45% during the week, as traders too
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(Oct 30): Yields on the benchmark US government debt have risen to their highest level in more than six months, ahead of an expected US interest rate hike at year-end. Yields on the 10-year US Treasury bonds rose past 2.45% during the week, as traders took into account optimism over the global economic recovery and stronger indications of growth in the US, even as inflation is expected to remain muted.

Against this backdrop, DBS Bank’s chief economist Taimur Baig said in an emailed note that the US Federal Reserve is likely to pursue a policy of gradual tightening. “We see the Fed funds rate heading to 2.25% by the end of 2018, with another 50 basis points in hikes the following year.”

Bond prices have been falling, after US lawmakers looked to be close to agreeing on a taxcut plan by year-end. There is also speculation that the next US Federal Reserve chair could be more of a “hawk”, or likely to favour tighter monetary policy. Current chair Janet Yellen’s term expires early next year.

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