[ad_1] <br><div><div><figure><div id="av-hermesv2/2023-03-10-1056-twoyear-us-treasury-TLTOR" style="max-width:100%"><img alt="Data: FactSet; Chart: Axios Visuals" class="axios-visual-newsletter-fallback-image" src="https://graphics.axios.com/hermesv2/2023-03-10-1056-twoyear-us-treasury/fallbacks/2023-03-10-1056-twoyear-us-treasury-fallback.png" width="1204" height="816"/><img alt="Data: FactSet; Chart: Axios Visuals" class="axios-visual-apple-fallback-image" src="https://graphics.axios.com/hermesv2/2023-03-10-1056-twoyear-us-treasury/fallbacks/2023-03-10-1056-twoyear-us-treasury-apple.png" width="1131" height="834"/></div><figcaption>Information: FactSet; Chart: Axios Visuals</figcaption></figure></div><p><a target="_blank" class="gtmContentClick" data-vars-link-text="Silicon Valley Bank" data-vars-click-url="https://www.axios.com/2023/03/10/silicon-valley-bank-government-control-fdic" data-vars-content-id="7847d28b-b1a9-4e97-8446-068366a48ca6" data-vars-headline="Macro ripples from Silicon Valley Bank" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/03/10/silicon-valley-bank-government-control-fdic" rel="noopener">Silicon Valley Bank</a>'s troubles — and fears that different regional banks may face related points — are rippling throughout Wall Road. That might complicate the Fed's inflation struggle, in addition to the financial outlook.</p><ul><li>Fears have been spreading that the speedy rise in rates of interest over the past yr has brought on losses on banks' bond portfolios, which may create misery throughout the banking system.</li></ul><p><strong>Why it issues: </strong>Losses within the banking sector may throttle credit score within the broader financial system, if banks grow to be extra cautious of their lending and/or face deposit outflows.</p><p><strong>State of play: </strong>Bond markets are going haywire. As of 11:50 ET Friday morning, the two-year Treasury yielded 4.71%, properly under the 5.07% reached on Wednesday.</p><ul><li>That doubtless displays, partly, a way that the roles report and banking troubles will make the Fed extra cautious about charge will increase.</li><li>However a transfer that giant most likely additionally includes a extra normal flight to high quality — panicky buyers snapping up Treasury securities as a protected haven amid ominous indicators within the banking system.</li></ul><p><strong>What they're saying: </strong>"There are latest developments that concern a number of banks that I am monitoring very rigorously. And when banks expertise monetary losses, it's and must be a matter of concern,"<strong> </strong>Treasury Secretary Janet Yellen stated Friday morning whereas testifying earlier than the Home Committee on Methods and Means.</p><p><strong>The intrigue: </strong>There's an irony to the bond market rally over the past two days. <a target="_blank" class="gtmContentClick" data-vars-link-text="Silicon Valley Bank" data-vars-click-url="https://www.axios.com/2023/03/10/silicon-valley-bank-run-svb-stock" data-vars-content-id="7847d28b-b1a9-4e97-8446-068366a48ca6" data-vars-headline="Macro ripples from Silicon Valley Bank" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/03/10/silicon-valley-bank-run-svb-stock" rel="noopener">Silicon Valley Bank</a> received in bother as a result of the market worth of its long-dated bonds fell on account of Fed charge hikes.</p><ul><li>However now <a target="_blank" class="gtmContentClick" data-vars-link-text="SVB's troubles" data-vars-click-url="https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital" data-vars-content-id="7847d28b-b1a9-4e97-8446-068366a48ca6" data-vars-headline="Macro ripples from Silicon Valley Bank" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital" rel="noopener">SVB's troubles</a> have triggered a bond market rally; the favored Vanguard Trade Traded Fund with the ticker BND is up 1.3% Friday alone.</li><li>Name it rate of interest ouroboros — the snake consuming its personal tail.</li></ul><span data-ad-status="NO_AD_LENGTH" data-ad-type="midStoryAd"/></div> <br>[ad_2] <br><a href="https://www.axios.com/2023/03/10/svb-meltdown-ripple-effect">Source link </a>