The relationship between yields and prices is inversely proportional, meaning that when one rises, the other falls. A basis point is equivalent to 0.01%. Recently, Treasury yields for different maturities have been fluctuating. For instance, the 1-month Treasury yield has increased by 0.009% to reach 5.37%, while the 3-month Treasury yield has decreased by 0.003% to stand at 5.393%. Similarly, the 6-month Treasury yield has fallen by 0.001% to reach 5.389%, and so on for various maturities.
In economic news, both services and manufacturing sectors experienced expansion in May, with higher-than-expected readings from the purchasing managers’ index (PMI) from S&P Global. This suggests positive growth in these sectors. Additionally, minutes from the Federal Open Market Committee’s (FOMC) policy meeting in late April and early May expressed uncertainty about when to ease monetary policy. These factors contribute significantly to the broader economic environment and affect market movements.
The analysis provided by CNBC’s Hakyung Kim and Jeff Cox sheds light on current market trends and economic indicators that influence financial decisions.
According to recent data, yields and prices have an inverse relationship, meaning that when one goes up, the other goes down. A basis point is equal to 0.01%, which can be used as a reference point for comparing yields across different durations.
In terms of Treasury yields for various durations, there has been some fluctuation recently, with some increasing and some decreasing.
For example, the 1-month Treasury yield has increased by a small amount (up by 0
