Treasuries Keep a Grip on Gains as Omicron May Delay Fed Hikes
- Futures betting first rate move may not come till September
- Benchmark 10-year yield remains close to Friday’s lows
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Treasury yields fluctuated close to Friday’s lows as investors stood by bets the Federal Reserve will think twice about hiking interest rates amid concern over the impact of the omicron variant on the recovery.
The two-year yield is right where it ended last week’s holiday-abbreviated session, while rates on longer-term securities are only a few basis points higher since then. Fed futures signal the first hike may not happen until September next year, compared with last Wednesday’s pricing which saw traders plump for June.