20 Jan 2015
US Treasury yields decline on concerns of global growth slowdown
FXStreet (Mumbai) - The yields at the short-end and the long-end of the treasury market curve in the US declined today after the International Monetary Funds revised its 2015 global growth forecasts lower.
At the time of writing, the 10-year Treasury yield is down 1.3 basis points to 1.802%, while the 30-year yield is down 1 basis points to 2.428%. At the short-end, the 2-year yield is down to 0.476%. The yields at the short-end have outperformed as the market still expected the Federal Reserve (Fed) to hike rates in 2015.
On the other hand, the long end yields came under pressure after the IMF said it expects the global economy to grow by 3.5% in 2015, down from the previous forecast of 3.8%. The IMF forecast came a week after the World Bank published a similar gloomy outlook in global growth. Thus, the 10-year and the 30-year yield in the US has come under pressure due to rise in the safe haven demand.
At the time of writing, the 10-year Treasury yield is down 1.3 basis points to 1.802%, while the 30-year yield is down 1 basis points to 2.428%. At the short-end, the 2-year yield is down to 0.476%. The yields at the short-end have outperformed as the market still expected the Federal Reserve (Fed) to hike rates in 2015.
On the other hand, the long end yields came under pressure after the IMF said it expects the global economy to grow by 3.5% in 2015, down from the previous forecast of 3.8%. The IMF forecast came a week after the World Bank published a similar gloomy outlook in global growth. Thus, the 10-year and the 30-year yield in the US has come under pressure due to rise in the safe haven demand.