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20 May 2015
Ten-year treasury note declined
FXStreet (Mumbai) - The yield on the benchmark ten-year note in the US fell back into losses after the Fed minutes showed policy makers unsure about economy withstanding the June rate hike.
The 10-year yield currently trades at 2.5 basis points lower at 2.23%, compared to the pre-minutes level of 2.25-2.26%. Meanwhile, at the short-end of the yield curve, the 2-year yield, which mimics short-term interest rate expectations in the US, fell 2.4 basis points to 0.585%. Meanwhile, the 30-year yield is still resilient around 3.051%, up 1.5 basis points.
The yields edged lower after the minutes revealed fed officials feel economy would not be strong enough to warrant a rate hike in June. Fed officials also saw the early slowdown as largely temporary, but acknowledged increased uncertainty about the outlook.
The reaction so far indicates no clear message has come through the minutes regarding the timing of interest rate hike in the US. The bond market rallied a bit on the Fed Minutes but Fed Funds futures markets barely moved, indicating the minutes have had no impact on the rate hike expectations.
The 10-year yield currently trades at 2.5 basis points lower at 2.23%, compared to the pre-minutes level of 2.25-2.26%. Meanwhile, at the short-end of the yield curve, the 2-year yield, which mimics short-term interest rate expectations in the US, fell 2.4 basis points to 0.585%. Meanwhile, the 30-year yield is still resilient around 3.051%, up 1.5 basis points.
The yields edged lower after the minutes revealed fed officials feel economy would not be strong enough to warrant a rate hike in June. Fed officials also saw the early slowdown as largely temporary, but acknowledged increased uncertainty about the outlook.
The reaction so far indicates no clear message has come through the minutes regarding the timing of interest rate hike in the US. The bond market rallied a bit on the Fed Minutes but Fed Funds futures markets barely moved, indicating the minutes have had no impact on the rate hike expectations.