29 Apr 2015
Treasury yields hardly react to FOMC statement
FXStreet (Mumbai) - The yields on the short duration and long duration treasuries hardly reacted to the FOMC policy statement, which showed policymakers continue to see moderate growth and job gains despite slowdown in the first quarter.
At the time of writing, the 10-year yield traded at 2.044%; up 7.1 basis points, while the 30-year yield traded 7.9 basis points at 1.75%. Meanwhile, at the short-end of the curve, the 2-year yield, which mimics short-term interest rate expectations, traded 1.6 basis points at 0.575%.
The yields had a very little reason or react since the policy outcome was pretty much in line with the expectations. The recent slowdown was partly blamed on transitory factors by the Fed, while stating that it continues to believe the inflation would rise towards 2% goal in the medium term. Moreover, the factors responsible for low inflation like Energy and import-price effects have been termed transitory as well.
At the time of writing, the 10-year yield traded at 2.044%; up 7.1 basis points, while the 30-year yield traded 7.9 basis points at 1.75%. Meanwhile, at the short-end of the curve, the 2-year yield, which mimics short-term interest rate expectations, traded 1.6 basis points at 0.575%.
The yields had a very little reason or react since the policy outcome was pretty much in line with the expectations. The recent slowdown was partly blamed on transitory factors by the Fed, while stating that it continues to believe the inflation would rise towards 2% goal in the medium term. Moreover, the factors responsible for low inflation like Energy and import-price effects have been termed transitory as well.