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29 Dec 2014
US Treasury yield curve continues to flatten
FXStreet (Mumbai) - With Federal Reserve Chair Janet Yellen poised to raise interest rates in 2015 for the first time in almost a decade, the yields at the short-end of the curve are outpacing those at the long-end, leading to flattening of the curve.
The 10-yr yield is down 2.1 basis points to 2.23%, while the 30-yr yield is down 1.3 basis points to 2.801%. Meanwhile, the 1-yr yield is unchanged at 0.237%, while the 2-yr yield is is 1 basis points lower at 0.73%.
Moreover, the 2-yr yield, a barometer of short-term interest rate expectations, has rallied from 0.516% to the current rate of 0.73% since the Dec. 17 Fe3d policy statement. The yields at the short-end rose to 3-1/2 year highs since Yellen said the central bank was on course to raise its overnight target rate from close to zero and suggested a “patient” approach may translate into an increase by the middle of 2015.
The yield on 10-year Treasuries has fallen 80 basis points in 2014 to 2.23%, compared with a 35 basis points rise in 2-year yields to 0.73%.
The 10-yr yield is down 2.1 basis points to 2.23%, while the 30-yr yield is down 1.3 basis points to 2.801%. Meanwhile, the 1-yr yield is unchanged at 0.237%, while the 2-yr yield is is 1 basis points lower at 0.73%.
Moreover, the 2-yr yield, a barometer of short-term interest rate expectations, has rallied from 0.516% to the current rate of 0.73% since the Dec. 17 Fe3d policy statement. The yields at the short-end rose to 3-1/2 year highs since Yellen said the central bank was on course to raise its overnight target rate from close to zero and suggested a “patient” approach may translate into an increase by the middle of 2015.
The yield on 10-year Treasuries has fallen 80 basis points in 2014 to 2.23%, compared with a 35 basis points rise in 2-year yields to 0.73%.