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7 Jan 2015
Treasury yields decline after Fed minutes indicate rate hike unlikely before April
FXStreet (Mumbai) - The Treasury yields declined across the yield curve after the December Federal Reserve (Fed) minutes indicated policymakers do not see an interest rate hike till April 2015.
At the long-end, the 10-year yield declined 1.6 basis points to trade at 1.947%, while the 30-year yield fell 1.8 basis points to 2.505%. Meanwhile, at the short-end, the 2-year yield fell 1.6 basis points to 2.53%, while the 1-year yield shed almost 1 basis points to trade at 0.251%.
Moreover, the yields dropped as Fed minutes also indicated that Plummeting oil prices were pushing the United States further from the Fed's inflation target. The Minutes did not show any complaints on the USD strength, although it did acknowledge the deflationary impact of a strong USD.
At the long-end, the 10-year yield declined 1.6 basis points to trade at 1.947%, while the 30-year yield fell 1.8 basis points to 2.505%. Meanwhile, at the short-end, the 2-year yield fell 1.6 basis points to 2.53%, while the 1-year yield shed almost 1 basis points to trade at 0.251%.
Moreover, the yields dropped as Fed minutes also indicated that Plummeting oil prices were pushing the United States further from the Fed's inflation target. The Minutes did not show any complaints on the USD strength, although it did acknowledge the deflationary impact of a strong USD.