The policy-sensitive 2-year rate plunged further below 5% on Tuesday, heading for its lowest closing level since Sept. 1, as the buying of government debt gained momentum and traders considered the possibility of no further Federal Reserve rate hikes this year. The 2-year yield fell almost 14 basis points to 4.94%, not far from its intraday low, as of midday trading in New York versus Friday’s closing level. The benchmark 10-year rate plunged 15.8 basis points to 4.625%, heading for its lowest close of this month. Meanwhile, the 30-year yield dropped 12 basis points to around 4.822%, leaving it on track for its lowest closing level since at least Oct. 2. The cash market was closed on Monday due to the Columbus Day and Indigenous Peoples holiday.
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