17 Dec 2015
Two-year treasury yield stays at 1%
FXStreet (Mumbai) - The US two-year treasury yield trades at 1.01% after the Fed hinted at four rates hike next year.
The long duration treasury yields witnessed correction. The 10-yr treasury yield fell three basis points, while the 30-yr yield fell four basis points.
The Fed announced a 25 basis point rate hike, but the real hawkish surprise came through the Dot Chart, which showed the Fed is on track to raise rates 4 times next year. The central bank also revised the 2016 GDP forecast higher.
Consequently, the 2-yr yield, which mimics short-term interest rate expectations, is up almost one basis points in the European session.
The long duration treasury yields witnessed correction. The 10-yr treasury yield fell three basis points, while the 30-yr yield fell four basis points.
The Fed announced a 25 basis point rate hike, but the real hawkish surprise came through the Dot Chart, which showed the Fed is on track to raise rates 4 times next year. The central bank also revised the 2016 GDP forecast higher.
Consequently, the 2-yr yield, which mimics short-term interest rate expectations, is up almost one basis points in the European session.