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23 Jan 2015
US Treasury yields decline in line with European peers
FXStreet (Mumbai) - The yields across the short-end and the long-end of the Treasury market curve in the US fell sharply, taking cues from their European peers, after the European central Bank unveiled an all-out QE program yesterday.
The 10-yr yield in the US is down 8.3 basis points to 1.813%, while the 30-yr yield fell 8.6 basis points to 2.384%. At the short-end, the 2-yr yield declined 2 basis points to 0.503 and the 3-yr yield fell 3.2 basis points to 0.867%. Meanwhile, in the Eurozone, the German 10-yr yield is down 7.4 basis points to 0.38%. The Spanish and the Italian 10-yr yields have declined 12 basis points each to trade 1.512% and 1.3% respectively. In the UK, 10-yr Gilt yields have weakened as well; down 4.9 basis points to 1.469%.
The Treasury yields may extend slide if the US equities fail to extend the ECB driven rally witnessed yesterday. The bonds will also be influenced by the Markit US manufacturing PMI data and housing data due for release today. The preliminary manufacturing index in January is seen improving slightly to 54.00, while the Existing home sales are seen rising 3.0% month-month in December.
The 10-yr yield in the US is down 8.3 basis points to 1.813%, while the 30-yr yield fell 8.6 basis points to 2.384%. At the short-end, the 2-yr yield declined 2 basis points to 0.503 and the 3-yr yield fell 3.2 basis points to 0.867%. Meanwhile, in the Eurozone, the German 10-yr yield is down 7.4 basis points to 0.38%. The Spanish and the Italian 10-yr yields have declined 12 basis points each to trade 1.512% and 1.3% respectively. In the UK, 10-yr Gilt yields have weakened as well; down 4.9 basis points to 1.469%.
The Treasury yields may extend slide if the US equities fail to extend the ECB driven rally witnessed yesterday. The bonds will also be influenced by the Markit US manufacturing PMI data and housing data due for release today. The preliminary manufacturing index in January is seen improving slightly to 54.00, while the Existing home sales are seen rising 3.0% month-month in December.