US Treasury yields fell on Monday as investors took note of stability in the banking sector after Swiss bank UBS agreed to buy rival Credit Suisse.
At 5:26 a.m. ET, the yield on the 10-year Treasury note fell more than six basis points, to 3.3319%. The two-year Treasury yield was trading at around 3.7155%, after declining about 13 basis points.
Yields and prices move in opposite directions and 1 basis point equals 0.01%.
treasures
| specific | a company | fruit | changes | % is changing |
|---|---|---|---|---|
| US1M | US Treasury for one month | 4.284% | +0.026 | 0.00% |
| US3M | US Treasury for 3 months | 4.453% | -0.006 | 0.00% |
| US6M | US Treasury for 6 months | 4.71% | -0.044 | 0.00% |
| US1Y | US Treasury for a year | 4.179% | -0.127 | 0.00% |
| US2Y | US Treasury for two years | 3.803% | -0.043 | 0.00% |
| US10Y | US Treasury for 10 years | 3.393% | -0.004 | 0.00% |
| US30Y | US Treasury for 30 years | 3.615% | +0.014 | 0.00% |
Investors weighed the outlook for the banking sector as regulators worked to reduce concerns about a banking sector crisis affecting regional and global financial institutions.
Over the weekend, the Swiss National Bank, the Swiss Financial Market Supervisory Authority and the Swiss government worked on the acquisition of Credit Suisse by UBS, the two largest Swiss banks.
As part of the deal, the Swiss National Bank and the Swiss government also announced that they would take measures to support the deal, including a loan of up to 100 billion Swiss francs ($108 billion).
Last week, Credit Suisse’s largest investor, the National Bank of Saudi Arabia, said it could no longer financially support the Swiss bank. The bank was also affected by the recent collapse of Silicon Valley Bank and Signature Bank, which raised concerns about the stability of the financial system and prompted the Federal Reserve to implement support measures.
On Sunday, the Fed announced a joint liquidity operation with several other central banks around the world. in statementThe Fed said the new measure “will serve as an important liquidity pillar to ease pressures in global financing markets, and thus help mitigate the effects of such pressures on the provision of credit to households and businesses.”
The Fed’s next meeting is scheduled to begin on Tuesday, and a new decision on interest rate policy is expected on Wednesday. An interest rate increase of 25 basis points is widely expected as many believe the central bank will aim to find a middle ground between pursuing its goal of cooling the economy and supporting the stability of the financial system.
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