29 Apr 2015
Treasury yields hover near one-month high
FXStreet (Mumbai) - The yield on the short duration and long duration treasury notes in the US rose to near one-month highs on Wednesday ahead of the US first quarter GDP report and the Federal Reserve policy statement.
The 10-year yield currently trades 3.7 basis points higher at 2.01%, while the 30-year yield trades 4.1 basis points higher at 2.712%. At the short-end, the 2-year yield, which mimics short-term interest rate expectations, is somewhat lagging, up around one basis points at 0.567%.
The hardening of the yields is quite surprising for many, since the markets are expecting a dovish Fed policy statement. Meanwhile, the US first quarter GDP report is expected to show the annualised growth rate slowed down to 1.00%, compared to the 2.2% growth seen in the fourth quarter of 2014.
The 10-year yield currently trades 3.7 basis points higher at 2.01%, while the 30-year yield trades 4.1 basis points higher at 2.712%. At the short-end, the 2-year yield, which mimics short-term interest rate expectations, is somewhat lagging, up around one basis points at 0.567%.
The hardening of the yields is quite surprising for many, since the markets are expecting a dovish Fed policy statement. Meanwhile, the US first quarter GDP report is expected to show the annualised growth rate slowed down to 1.00%, compared to the 2.2% growth seen in the fourth quarter of 2014.