18 Feb 2015
Treasury yields decline on Fed minutes
FXStreet (Mumbai) - Treasury yields across at the short-end as well as the long-end of the market curve declined after the Fed minutes released today indicated no rush among policymakers to increase the interest rates.
The 10-year yield fell to 2.073% from the pre-minutes level of 2.12%, while the 30-year note yield fell to 2.6895 from 2.711%. Meanwhile, at the short-end, the 2-year yield, which mimics short-term interest rate expectations, fell to 0.5895 from the pre-minutes level of 0.658%. The yield is now down 7.3 basis points for the day. On similar lines, the 1-year dropped to 0.198%.
The yields came under pressure as minutes revealed policymakers want more evidence of continued growth and signs of inflation picking up before liftoff. Many policymakers also felt that dropping ‘patient” word could lead to date focus with regards to the timing of the interest rate hike. Fed minutes also stated risks to US economy from China, Mideast, Ukraine, Greece.
The 10-year yield fell to 2.073% from the pre-minutes level of 2.12%, while the 30-year note yield fell to 2.6895 from 2.711%. Meanwhile, at the short-end, the 2-year yield, which mimics short-term interest rate expectations, fell to 0.5895 from the pre-minutes level of 0.658%. The yield is now down 7.3 basis points for the day. On similar lines, the 1-year dropped to 0.198%.
The yields came under pressure as minutes revealed policymakers want more evidence of continued growth and signs of inflation picking up before liftoff. Many policymakers also felt that dropping ‘patient” word could lead to date focus with regards to the timing of the interest rate hike. Fed minutes also stated risks to US economy from China, Mideast, Ukraine, Greece.