5 Aug 2015
US treasuries drop after Lockhart signals September
FXStreet (Mumbai) - The treasuries fell from the highest level since early June after the Atlanta Fed’s Lockhart expressed his support for a rate hike in September.
2-yr yield recovered Friday’s losses
The 2-yr yield, which mimics rate hike expectations, rose to high of 0.748%. The yield has recovered entire losses witnessed after Friday’s disappointing wage data. The rate hike expectations strengthened as Fed was widely viewed as being neutral/dovish. Consequently, his hint at a September rate hike caught markets by surprise.
Meanwhile, the US 10-yr treasury yield is up 2.8 basis points at 2.239% and the 30-yr yield is up 1.7 basis points at 2.905%.
On Monday, a drop in crude prices to six-month lows and weaker-than-forecast manufacturing data fueled speculation the Fed would hold off on raising interest rates as soon as its next meeting, in September.
2-yr yield recovered Friday’s losses
The 2-yr yield, which mimics rate hike expectations, rose to high of 0.748%. The yield has recovered entire losses witnessed after Friday’s disappointing wage data. The rate hike expectations strengthened as Fed was widely viewed as being neutral/dovish. Consequently, his hint at a September rate hike caught markets by surprise.
Meanwhile, the US 10-yr treasury yield is up 2.8 basis points at 2.239% and the 30-yr yield is up 1.7 basis points at 2.905%.
On Monday, a drop in crude prices to six-month lows and weaker-than-forecast manufacturing data fueled speculation the Fed would hold off on raising interest rates as soon as its next meeting, in September.