Here’s why concerns about omicron and doubts in the Fed’s ability to deliver aggressive rate hikes are pulling down Treasury yields
Investors flocked to the safety of Treasurys on Thursday, pulling down yields as concerns about the omicron variant flared and doubts lingered that the Federal Reserve will be able to lift interest rates aggressively to help combat inflation.
The rally led to lower yields on everything from 1-month bills to the 20-year Treasury bond. Yields on 2-year to 7-year maturities, which capture the period in which the Federal Reserve plans to execute its next rate-hike campaign, bore the brunt of the declines.
Thursday’s moves, which included drops in the tech-heavy Nasdaq Composite Index
COMP,
-2.47%,
the S&P 500 Index
SPX,
-0.87%
and Dow industrials
DJIA,
-0.08%,
came a day after the Federal Reserve penciled in three rate hikes for 2022, while boosting its rate outlook through 2024 relative to September forecasts. Meanwhile, Fed-dated…
