17 Dec 2014
2-year Treasury yield collapses after Fed lowered interest rate estimate
FXStreet (Mumbai) - The yields at the short-end of the US bond market curve fell sharply after the Federal Reserve lowered the median outlook for end-2015 Fed funds rate to 1.125% from the September’s forecast of 1.375%.
The 2-yr treasury yield, which mimics the short-term interest rate expectation, fell 7.7 basis points from a high of 0.629% to 0.552%. The Fed did remove the considerable time pledge, although the downward revision of the median Fed funds rate estimate makes the policy statement tilt on a dovish side.
2-yr Yield Technical Levels
The yield has an immediate resistance located at 0.629%, above which gains could be extended to 0.651%. Meanwhile, support is seen at 0.528% and 0.516% levels.
The 2-yr treasury yield, which mimics the short-term interest rate expectation, fell 7.7 basis points from a high of 0.629% to 0.552%. The Fed did remove the considerable time pledge, although the downward revision of the median Fed funds rate estimate makes the policy statement tilt on a dovish side.
2-yr Yield Technical Levels
The yield has an immediate resistance located at 0.629%, above which gains could be extended to 0.651%. Meanwhile, support is seen at 0.528% and 0.516% levels.