Yields on 20-year Treasuries reach 5.05% and grow with the booming economy in the North American country
Yields on 20-year U.S. Treasury bonds are at 5,05%. The mark was reached on Friday (10.Jan.2023). The fees for Treasuries of 30 years are at 4.97% and the 10 years were the 4.79%. These levels are close to the results observed in 2007, before the financial crisis that affected part of the world the following year.
The movement is due to those above expectations. There were 256 thousand jobs created outside the agricultural sector in December 2024. The market, in turn, projected the opening of 155 thousand jobs.
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The yield on US Treasury bonds at a higher level puts pressure on risky assets. At the same time, the job market in the USA, the Fed – the North American central bank – must be cautious when deciding on a reduction in the base interest rate at each meeting.
IMPACT ON EMERGING ECONOMIES
Higher interest rates in the US attract more resources there. THE Brazil’s delicate fiscal situation makes the country more vulnerable: to attract capital it will also have to raise the Selic rate.
In December 2024, the (Central Bank) had indicated that it should .