26 May 2015
Treasury yield curve flattened for the fourth day
FXStreet (Mumbai) - The treasury yield curve flattened for the fourth day ahead of the durable goods and first quarter GDP data in the US which would show whether or not the US economy is ready for the lift-off from the record low interest rates.
The yield spread between 2- and 10-year US government bonds is set for its smallest closing level in more than two weeks as Federal Reserve Vice Chairman Stanley Fischer said the central bankers are weighing the risk of raising rates prematurely against the danger of falling behind the curve.
The ten-year yield currently trades 4.1 basis points lower at 2.188%, while the 2-year yield is moderately higher at 0.627%.
Ahead int he day data on durable goods orders, new home sales and consumer confidence are due. Economic reports last week showed housings starts in April reached a seven-year high and core inflation exceeded forecasts.
The yield spread between 2- and 10-year US government bonds is set for its smallest closing level in more than two weeks as Federal Reserve Vice Chairman Stanley Fischer said the central bankers are weighing the risk of raising rates prematurely against the danger of falling behind the curve.
The ten-year yield currently trades 4.1 basis points lower at 2.188%, while the 2-year yield is moderately higher at 0.627%.
Ahead int he day data on durable goods orders, new home sales and consumer confidence are due. Economic reports last week showed housings starts in April reached a seven-year high and core inflation exceeded forecasts.