Fixed income

Bond traders’ expectations for how fast inflation will rise over the coming five years have topped 3% for the first time on record.

Investors in need of an alternative to certain T-bills are flocking to the Federal Reserve’s facility for reverse repurchase agreements. That’s adding to demand created by T-bill supply cuts.

Ontario Teachers’ Pension Plan said equity gains helped offset fixed income and currency losses in the first half of the year.

What policy makers say about economic inequality at this month’s Jackson Hole symposium is potentially a bigger deal for bond investors than any taper talk.

Federal Reserve Chairman Jerome Powell said the market dislocations of the past year resulting from the pandemic had changed the impact that the supplementary leverage ratio was having on the largest banks. After temporarily easing the requirement, the central bank is considering longer-term reforms.

The 10-year Treasury yield fell below 1.5% for the first time in a month while the rate on the U.S. long bond dropped to a level unseen since early March.

Relying on retained earnings alone, it would be until at least 2036, if not longer, before government control of Fannie Mae and Freddie Mae might end.

After they reopened on Tuesday, Treasury 10-year yields rose four basis points to touch 1.25% — the highest since last March — while the 30-year equivalent pushed above 2%.

The best mortgage bonds to buy now may be the ones the Federal Reserve is purchasing, because the securities might benefit the most if macro optimism fades.

The deal definitively ends a monthslong war of words between the data provider and stakeholders who attempted a hostile takeover.