14 Jul 2015
US Treasury yields fall after retail sales report
FXStreet (Mumbai) - The yields on the long duration and short duration treasuries fell after the official data in the US showed retail consumption unexpectedly contracted in June.
The yield on the benchmark 10-year treasury note fell from 2.425% to 2.392%. The 30-year yield fell from 3.23% to 3.187%.
At the short-end of the curve, the 2-year yield, which mimics short-term interest rate expectations, fell from 0.67% to 0.637%. The losses at the short-end may be an indication that rate hike expectations declined post the release of a weak retail sales report.
The data released by the US commerce department on Tuesday showed the retail sales dropped 0.3% in June following a 1.2% growth seen in May. The consensus estimate had called for a reading of 0.3%. the dismal report has raised questions on whether the economy would be able to sustain an interest rate hike.
The yield on the benchmark 10-year treasury note fell from 2.425% to 2.392%. The 30-year yield fell from 3.23% to 3.187%.
At the short-end of the curve, the 2-year yield, which mimics short-term interest rate expectations, fell from 0.67% to 0.637%. The losses at the short-end may be an indication that rate hike expectations declined post the release of a weak retail sales report.
The data released by the US commerce department on Tuesday showed the retail sales dropped 0.3% in June following a 1.2% growth seen in May. The consensus estimate had called for a reading of 0.3%. the dismal report has raised questions on whether the economy would be able to sustain an interest rate hike.