Treasury yields slid to new multi-month lows on Thursday, with the 10-year rate falling to as low as 3.88%, as investors continued to price in the Federal Reserve’s unexpectedly dovish policy pivot from the previous session.What’s happening
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
fell 7.8 basis points to 4.399% from 4.477% on Wednesday.
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
dropped 9.7 basis points to 3.935% from 4.032% late Wednesday, after touching an intraday low of 3.882%.
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
fell 11.9 basis points to 4.064% from 4.183% Wednesday afternoon.
The 10- and 30-year rates were each on track to reach their lowest closing levels since late July.
What’s driving markets Investors and traders continued to absorb the Federal Reserve’s interest-rate projections and policy update, released on Wednesday.
The U.S. central bank left interest rates unchanged at 5.25%-5.5%, as expected, but surprised the market by suggesting it was done raising borrowing costs and would likely cut rates by 75 basis points in 2024 after the annual headline rate of the consumer-price index fell to 3.1% in November.Read: History shows even the Fed can’t really predict what it does with interest rates a year out The widely followed 10-year Treasury yield has fallen more than a full percentage point from the 5.005% intraday high it had recorded on Oct. 23. The magnitude of the overall decline seen since then has now exceeded that which occurred during the onset of the COVID-19 pandemic in the U.S., when the 10-year rate dropped from 1.586% to 0.5755% from Feb. 19, 2020, to April 2, 2020, according to Tradeweb data.Markets are now pricing in an 81.4% probability that the Fed will leave interest rates unchanged again in January, according to the CME FedWatch Tool. The chan …
Article Attribution | Read More at Article Source
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
fell 7.8 basis points to 4.399% from 4.477% on Wednesday.
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
dropped 9.7 basis points to 3.935% from 4.032% late Wednesday, after touching an intraday low of 3.882%.
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
fell 11.9 basis points to 4.064% from 4.183% Wednesday afternoon.
The 10- and 30-year rates were each on track to reach their lowest closing levels since late July.
What’s driving markets Investors and traders continued to absorb the Federal Reserve’s interest-rate projections and policy update, released on Wednesday.
The U.S. central bank left interest rates unchanged at 5.25%-5.5%, as expected, but surprised the market by suggesting it was done raising borrowing costs and would likely cut rates by 75 basis points in 2024 after the annual headline rate of the consumer-price index fell to 3.1% in November.Read: History shows even the Fed can’t really predict what it does with interest rates a year out The widely followed 10-year Treasury yield has fallen more than a full percentage point from the 5.005% intraday high it had recorded on Oct. 23. The magnitude of the overall decline seen since then has now exceeded that which occurred during the onset of the COVID-19 pandemic in the U.S., when the 10-year rate dropped from 1.586% to 0.5755% from Feb. 19, 2020, to April 2, 2020, according to Tradeweb data.Markets are now pricing in an 81.4% probability that the Fed will leave interest rates unchanged again in January, according to the CME FedWatch Tool. The chan …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]