The yield on two-year Treasury bonds fell to its lowest level since December 12, falling 3.6 basis points to 4.178 per cent.
The yield on the two-year Treasury bond fell 2 basis points in the short term to the latest 4.18%. The dollar index fell 15 points in the short term. US interest rate futures slightly raised the probability of the Federal Reserve cutting interest rates by 25 basis points this month to 70%. On the news, Federal Reserve Governor Waller favored a rate cut in December.
The yield on two-year Treasury bonds rose to 4%, the highest level since August 22.
The Federal Reserve cut interest rates for the first time, and the two-year U.S. Treasury yield fell 8 basis points in the short term, now at 3.598%.
The rally continued on Tuesday, with the yield on the two-year Treasury bond falling to about 3.85 per cent from more than 5 per cent at the end of April. The gains over the past four months are the longest streak of gains since 2021. The move comes on expectations that the Federal Reserve will cut its base rate by more than two percentage points over the next 12 months, which would be the biggest drop since the 1980s outside of a downturn. For bond bulls, this poses a risk that if July...
The two-year Treasury yield fell more than 8 basis points to below 3.9% on a refresh day following the release of Federal Reserve meeting notes.
The US two-year Treasury yield fell to its lowest level since May 2023, influenced by the Federal Reserve's interest rate cut bet.
Investors have flocked to two-year Treasury issues in a sign that the market believes the Federal Reserve will start cutting interest rates this year. The $69 billion placement is in line with historical records, with win the bidding yielding 4.434%, more than two basis points below the pre-issue trading level at 1pm ET. This is the lowest yield for a two-year Treasury issue win the bidding since January. The size of the issue in January was 60 billion dollars. John Canavan, analyst at Oxford Ec...
The latest inversion of the two-year and 10-year Treasury yield curves was 35.5 basis points.