9 Mar 2015
US Treasury yields weaken
FXStreet (Mumbai) - The Treasury prices gained, pushing the yields lower across the board after the sharp rise see on Friday post the release of a stellar February month non-farm payrolls report.
At the time of writing, the 10-year yield was down 3.8 basis points (bps) to 2.202%, while the 30-year yield was down 4.2 bps to 2.797%. The 2-year yield, which mimics short-term interest rate expectations, was down 1.5 bps to 0.708%.
The yields had shot higher on Friday after the strong jobs report increased speculation that the Federal Reserve would drop “patient” word from its March policy statement, thereby making way for a possible interest rate hike in April or future meetings. The increased probability of an early interest rate hike saw a sharp rise in the yields to more than two-month highs.
The yields could have weakened today, tracking the losses in the German yields, which weakened on reports the central banks across the Eurozone bought the German debt under the European Central Bank’s (ECB) QE program.
At the time of writing, the 10-year yield was down 3.8 basis points (bps) to 2.202%, while the 30-year yield was down 4.2 bps to 2.797%. The 2-year yield, which mimics short-term interest rate expectations, was down 1.5 bps to 0.708%.
The yields had shot higher on Friday after the strong jobs report increased speculation that the Federal Reserve would drop “patient” word from its March policy statement, thereby making way for a possible interest rate hike in April or future meetings. The increased probability of an early interest rate hike saw a sharp rise in the yields to more than two-month highs.
The yields could have weakened today, tracking the losses in the German yields, which weakened on reports the central banks across the Eurozone bought the German debt under the European Central Bank’s (ECB) QE program.