17 Dec 2014
Treasury yield curve steepens after Fed event
FXStreet (Mumbai) - The yield curve in the US treasury market steepened after the Fed policy statement lowered interest rate estimates for 2015, while revising growth forecasts higher.
At the short-end , the 2-year yield is largely unchanged at 0.565%, while the 3-yr yield is up 1.9 basis points to 1.008%. Meanwhile, at the long-end, the 10-yr yield is now up 4 basis points to 2.11%, while the 30-yr yield rose 2.8 basis points to 2.73%.
Moreover, the yields at the long-end rose since the downward revision of the 2015-end median interest rate estimate, while sounding upbeat on the economy reduced the safe haven demand for the treasuries. On the other hand, the short-end yields, which mimics short-term interest rate expectations, were hurt by the downward revision of the interest rate estimate.
At the short-end , the 2-year yield is largely unchanged at 0.565%, while the 3-yr yield is up 1.9 basis points to 1.008%. Meanwhile, at the long-end, the 10-yr yield is now up 4 basis points to 2.11%, while the 30-yr yield rose 2.8 basis points to 2.73%.
Moreover, the yields at the long-end rose since the downward revision of the 2015-end median interest rate estimate, while sounding upbeat on the economy reduced the safe haven demand for the treasuries. On the other hand, the short-end yields, which mimics short-term interest rate expectations, were hurt by the downward revision of the interest rate estimate.