17 Dec 2014
US 10-yr Treasury yield recovers ahead of the Fed policy statement
FXStreet (Mumbai) - The 10-yr treasury yield in the US is rising as markets brace up for a possible change in the language of the Federal Reserve (Fed) policy statement over interest rates as well as for the November month CPI data.
The 10-yr yield currently trades at 2.075%; up 6.6 basis points from the low of 2.009% hit yesterday. Moreover, the markets expect the Fed to drop the “considerable time” phrase and replace it with a “slow lift-off in the interest rates” phrase which is data dependent. A clear cut indication may come from the projection or Dot chart, which show an increased probability of a sooner-than-expected rate hike in the US.
Meanwhile, the treasuries may also take cues from the US CPI data for November which is likely to show inflation increased 1.4%, down from the October’s 1.7%.
10-yr Yield Technical Levels
The yield has an immediate resistance at 2.083% (Dec. 12 low), above which gains could be extended to 2.136% (Dec. 15 high). On the other hand, support is seen at 2.047% and 2.009%.
The 10-yr yield currently trades at 2.075%; up 6.6 basis points from the low of 2.009% hit yesterday. Moreover, the markets expect the Fed to drop the “considerable time” phrase and replace it with a “slow lift-off in the interest rates” phrase which is data dependent. A clear cut indication may come from the projection or Dot chart, which show an increased probability of a sooner-than-expected rate hike in the US.
Meanwhile, the treasuries may also take cues from the US CPI data for November which is likely to show inflation increased 1.4%, down from the October’s 1.7%.
10-yr Yield Technical Levels
The yield has an immediate resistance at 2.083% (Dec. 12 low), above which gains could be extended to 2.136% (Dec. 15 high). On the other hand, support is seen at 2.047% and 2.009%.