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31 Mar 2015
Short duration Treasury yields weaken in the US
FXStreet (Mumbai) - The yields on the short duration as well as longer duration bonds in the US fell amid the deadlock between Greece and its international creditors.
At the time of writing, the 10-year was down almost one basis points (bps) to 1.955%, while the 30-year yield was largely unchanged at 2.555%. At the short end, the 2-year yield fell 1.6 bps to 0.575%, while the 3-year yield declined 1.9 bps to 0.903%.
Interestingly, the yields on the long-end of the curve are relatively resilient despite the Greece issue. The relative weakness in the short-end yields could be due to a slowdown in the personal spending in February revealed by the official data released on Monday.
The long duration yields are usually more sensitive to “risk-on” and “risk-off” events, while the short duration yields are more sensitive to short-term interest rate hike expectations.
At the time of writing, the 10-year was down almost one basis points (bps) to 1.955%, while the 30-year yield was largely unchanged at 2.555%. At the short end, the 2-year yield fell 1.6 bps to 0.575%, while the 3-year yield declined 1.9 bps to 0.903%.
Interestingly, the yields on the long-end of the curve are relatively resilient despite the Greece issue. The relative weakness in the short-end yields could be due to a slowdown in the personal spending in February revealed by the official data released on Monday.
The long duration yields are usually more sensitive to “risk-on” and “risk-off” events, while the short duration yields are more sensitive to short-term interest rate hike expectations.