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18 Mar 2015
US Treasury yields drop, short duration yields relatively resilient
FXStreet (Mumbai) - The yields on the short duration and long duration Treasuries in the US dropped ahead of the FOMC statement due for release later today.
The 10-year yield fell 1.7 basis points (bps) to 2.042%, while the 30-year yield fell 1.6 bps to 2.60%. Meanwhile, the yields at the short-end of the curve are relatively resilient. The 2-year yield, which mimics the short-term interest rate expectations, is down marginally at 0.67%, while the 1-year yield is marginally positive at 0.261%.
The resilience at the short-end of the curve indicates the markets seem convinced the fed would drop the word “patient” from its forward guidance, thereby opening doors for an interest rate hike any of its subsequent meetings.
Meanwhile, the long duration yields could have also gone down on the back of downward revision of the global growth forecasts by the rating agency Fitch.
The 10-year yield fell 1.7 basis points (bps) to 2.042%, while the 30-year yield fell 1.6 bps to 2.60%. Meanwhile, the yields at the short-end of the curve are relatively resilient. The 2-year yield, which mimics the short-term interest rate expectations, is down marginally at 0.67%, while the 1-year yield is marginally positive at 0.261%.
The resilience at the short-end of the curve indicates the markets seem convinced the fed would drop the word “patient” from its forward guidance, thereby opening doors for an interest rate hike any of its subsequent meetings.
Meanwhile, the long duration yields could have also gone down on the back of downward revision of the global growth forecasts by the rating agency Fitch.