25 Feb 2015
US 10-year Treasury yield trades below 2%
FXStreet (Mumbai) - The 10-year Treasury yield hovers below the 2% level after the Fed Chairwoman Yellen’s testimony yesterday erased bets of a rate hike in June. Markets are now betting the interest rate hike could happen in Q4 2015.
10-year yield below 2%, while 2-year yield below 0.6%
The 2-year yield, which mimics short-term interest rate hike expectations, fell below 0.6% on a slightly dovish comments from Yellen. The two-year yield had hit a low of 0.553% in the previous session, although yield eventually recovered as the markets believe the interest rate hike in 2015 is still on the table.
Meanwhile, the 10-year yield, which also reflects weakness overseas, is once again moving closer to the previous session’s low at 1.972%.
10-year yield Technical Levels
The immediate resistance is seen at 2.00%, above which yield could rise to 2.03%. On the flip side, a break below the immediate support at 1.972% could push the yield lower at 1.887%.
10-year yield below 2%, while 2-year yield below 0.6%
The 2-year yield, which mimics short-term interest rate hike expectations, fell below 0.6% on a slightly dovish comments from Yellen. The two-year yield had hit a low of 0.553% in the previous session, although yield eventually recovered as the markets believe the interest rate hike in 2015 is still on the table.
Meanwhile, the 10-year yield, which also reflects weakness overseas, is once again moving closer to the previous session’s low at 1.972%.
10-year yield Technical Levels
The immediate resistance is seen at 2.00%, above which yield could rise to 2.03%. On the flip side, a break below the immediate support at 1.972% could push the yield lower at 1.887%.