24 Mar 2015
US Treasuries rise, 30-year yield falls to six-week low
FXStreet (Mumbai) - The Treasures rose on Tuesday, pushing the yields lower after the data in the US showed the inflation in February remained well below the Federal Reserve’s target.
The uptick in the core inflation may have provided some relief, although the headline year-on-year figure at 0.0%, still remains well below the Fed’s target of 2%. Hence, yields dropped on speculation that the Fed would delay the interest rate hike.
The 10-year yield hit a low of 1.894% post the data, while the 30-year yield hit a six week low of 2.49%, its lowest level since Feb. 5. Moreover, the restrained inflation is helping make bonds attractive even at low yields.
The uptick in the core inflation may have provided some relief, although the headline year-on-year figure at 0.0%, still remains well below the Fed’s target of 2%. Hence, yields dropped on speculation that the Fed would delay the interest rate hike.
The 10-year yield hit a low of 1.894% post the data, while the 30-year yield hit a six week low of 2.49%, its lowest level since Feb. 5. Moreover, the restrained inflation is helping make bonds attractive even at low yields.