20 Mar 2015
US Treasuries yields on course for a second weekly loss
FXStreet (Mumbai) - The Treasury prices in the US are on course for a second weekly gain after the Federal Reserve surprised markets by reducing estimates for interest-rate increases. The price gains mean the yields are likely to end the week lower.
Treasuries are on the way to its best gains since the first week of January as investors pushed back bets on the timing of the interest rate hike in the US. The interest rate futures traders now see a 44% probability that the benchmark rate will increase by September, from a 55% probability seen before the Wednesday's Fed announcement.
At the time of writing, the 10-year yield was down 2 basis points to 1.956%, while the 2-year yield, which more accurately represents the interest rate hike expectations, was down 1.6 bps to 0.601%.
Treasuries are on the way to its best gains since the first week of January as investors pushed back bets on the timing of the interest rate hike in the US. The interest rate futures traders now see a 44% probability that the benchmark rate will increase by September, from a 55% probability seen before the Wednesday's Fed announcement.
At the time of writing, the 10-year yield was down 2 basis points to 1.956%, while the 2-year yield, which more accurately represents the interest rate hike expectations, was down 1.6 bps to 0.601%.