16 Dec 2014
US Treasury yields remain weak ahead of Fed policy
FXStreet (Mumbai) - The yields across the short-end and the long-end of the US bond market curve weakened today as markets brace up for the Federal Reserve policy statement due tomorrow.
The yields weakened as the treasuries witnessed a rise in the safe haven demand as risk aversion firmed its grip on global financial markets. The 10-yr treasury yield is down 5.9 basis points to 2.057%. The yield had hit a low of 2.009% earlier today. The 30-yr yield is down 3.9 basis points to 2.708%.
The short-to end of the curve has witnessed similar weakening of yields. The 2-yr note yield declined 5.2 basis points to 0.536%, while the 3-yr note yield is down 6.3 basis points to 0.971%. On similar lines, the 5-yr yield and the 7-yr yield have declined 6.7 and 6.3 basis points to trade at 1.51% and 1.841% respectively.
Moreover, the disappointing housing data released today in the US has failed to have any impact on the Treasury yields. Similarly, the weaker-than-expected Markit PMI manufacturing (53.7 in Dec) released today has been shrugged-off by the treasuries.
The markets are expecting a change in the Fed policy statement tomorrow with regards to the interest rates. However, the risk aversion in the financial markets may cap gains in the yields.
The yields weakened as the treasuries witnessed a rise in the safe haven demand as risk aversion firmed its grip on global financial markets. The 10-yr treasury yield is down 5.9 basis points to 2.057%. The yield had hit a low of 2.009% earlier today. The 30-yr yield is down 3.9 basis points to 2.708%.
The short-to end of the curve has witnessed similar weakening of yields. The 2-yr note yield declined 5.2 basis points to 0.536%, while the 3-yr note yield is down 6.3 basis points to 0.971%. On similar lines, the 5-yr yield and the 7-yr yield have declined 6.7 and 6.3 basis points to trade at 1.51% and 1.841% respectively.
Moreover, the disappointing housing data released today in the US has failed to have any impact on the Treasury yields. Similarly, the weaker-than-expected Markit PMI manufacturing (53.7 in Dec) released today has been shrugged-off by the treasuries.
The markets are expecting a change in the Fed policy statement tomorrow with regards to the interest rates. However, the risk aversion in the financial markets may cap gains in the yields.