23 Dec 2014
US Treasuries yields rise after strong GDP data
FXStreet (Mumbai) - The yields across the treasury market curve in the US shot higher after the stellar US third quarter GDP report raised hopes of a sooner-than-expected policy tightening in the US.
The commerce department in the US revised up its estimate of GDP growth to a 5% from the 3.9% reported in the last month, citing stronger consumer and business spending than it had previously factored in. This is the fastest growth since the third quarter of 2003.
The US 10-yr treasury yield now trades 2.6 basis points higher at 2.188%, while the 30-yr yield has gained 1.9 basis points to 2.768%. Meanwhile, at the short-end, the 2-yr yield is up 1.1 basis points to 0.728%, while the 3-yr yield is up 2.1 basis points to 1.129%.
Moreover, with the strong US GDP data, the probability of a sooner-than-expected policy normalization in 2015 increases; as stated by Federal Reserve (Fed) chair. Yellen in her press conference at the Dec. 17 meet.
The commerce department in the US revised up its estimate of GDP growth to a 5% from the 3.9% reported in the last month, citing stronger consumer and business spending than it had previously factored in. This is the fastest growth since the third quarter of 2003.
The US 10-yr treasury yield now trades 2.6 basis points higher at 2.188%, while the 30-yr yield has gained 1.9 basis points to 2.768%. Meanwhile, at the short-end, the 2-yr yield is up 1.1 basis points to 0.728%, while the 3-yr yield is up 2.1 basis points to 1.129%.
Moreover, with the strong US GDP data, the probability of a sooner-than-expected policy normalization in 2015 increases; as stated by Federal Reserve (Fed) chair. Yellen in her press conference at the Dec. 17 meet.