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21 Oct 2014
US Ten-year Treasury yields await CPI data
FXStreet (Mumbai) - The Ten-year Treasury yields are hovering around the 2.2% level since the last four trading sessions as investors await the CPI data due for release tomorrow. The yield on the Ten-year treasury is down to 2.179 % in European trade, compared to Monday's close of 2.183%.
Moreover, the CPI is expected to push down inflation expectations, thereby reducing the probability of an early interest rate hike in the US. The Federal Reserve (Fed) has expressly stated that the slowdown in the global economy along with the fall in the Crude oil is likely to push down the inflation expectations in the US.
Even the short-term interest rate futures implied markets do not expect the US central bank to raise rates until late 2015. In the meantime, Existing home sales data is due for release out of the US today.
Ten-year Yield Technical level
The yield has an immediate resistance of 2.229 (Oct 17 high), above which it can rise to 2.279%. Meanwhile, the immediate resistance is located around 2.12%.
Moreover, the CPI is expected to push down inflation expectations, thereby reducing the probability of an early interest rate hike in the US. The Federal Reserve (Fed) has expressly stated that the slowdown in the global economy along with the fall in the Crude oil is likely to push down the inflation expectations in the US.
Even the short-term interest rate futures implied markets do not expect the US central bank to raise rates until late 2015. In the meantime, Existing home sales data is due for release out of the US today.
Ten-year Yield Technical level
The yield has an immediate resistance of 2.229 (Oct 17 high), above which it can rise to 2.279%. Meanwhile, the immediate resistance is located around 2.12%.