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25 Feb 2015
US Treasury yields erase losses ahead of Yellen testimony
FXStreet (Mumbai) - The yields on the short duration and long duration Treasuries in the US erased losses to trade higher ahead of the Fed chair Yellen’s testimony before the House Financial Services Committee.
The 10-year yield in the US recovered from the low of 1.957% to hit a high of 1.997%, while the 30-year yield recovered from the low of 2.563% to 2.61%. Meanwhile, the 2-year yield, which tracks short-term interest rate expectations, rose from the low of 0.587% to trade 1.3 basis points higher at 0.615%.
The 10-year yield hit a low of 1.957% earlier today on an extended reaction to Fed chief’s comments on Tuesday that Fed was “unlikely” to raise interest rates in the next few months, given current economic conditions. Analysts believe the June rate hike is off the table after Yellen’s comments yesterday.
It remains to be seen whether the recovery in the Treasury yields lasts as markets do not expect Yellen to say anything which will shake up the markets today.
The 10-year yield in the US recovered from the low of 1.957% to hit a high of 1.997%, while the 30-year yield recovered from the low of 2.563% to 2.61%. Meanwhile, the 2-year yield, which tracks short-term interest rate expectations, rose from the low of 0.587% to trade 1.3 basis points higher at 0.615%.
The 10-year yield hit a low of 1.957% earlier today on an extended reaction to Fed chief’s comments on Tuesday that Fed was “unlikely” to raise interest rates in the next few months, given current economic conditions. Analysts believe the June rate hike is off the table after Yellen’s comments yesterday.
It remains to be seen whether the recovery in the Treasury yields lasts as markets do not expect Yellen to say anything which will shake up the markets today.