29 Apr 2015
US Treasury yields rise amid expectations of a dovish FOMC statement
FXStreet (Mumbai) - The yield on the short duration and long duration treasury yields rose sharply on Tuesday amid widespread expectations of a dovish FOMC policy statement.
The 10-year yield rose to a high of 2.01%, while the 2-year yield, which mimics short-term interest rate expectations, rose to a high of 0.571%. Moreover, the rise in the yields at the short duration contradicts the expectations that the Fed could keep the rates on hold till late 2015 or early 2016. Earlier, the markets were expecting the Fed could raise rates in June 2015.
Meanwhile, the 5-yr Note auction went well, but selling continued into the close. The US yield curve bear steepened with yields up between 4.5 bps (2-yr) and 9.1 bps (30-yr).
The 10-year yield rose to a high of 2.01%, while the 2-year yield, which mimics short-term interest rate expectations, rose to a high of 0.571%. Moreover, the rise in the yields at the short duration contradicts the expectations that the Fed could keep the rates on hold till late 2015 or early 2016. Earlier, the markets were expecting the Fed could raise rates in June 2015.
Meanwhile, the 5-yr Note auction went well, but selling continued into the close. The US yield curve bear steepened with yields up between 4.5 bps (2-yr) and 9.1 bps (30-yr).