Back
16 Dec 2014
Treasuries rise on flight to safety
FXStreet (Mumbai) - Treasuries rose, erasing some of their losses yesterday, as safe haven demand from the overseas increased after Russia unexpectedly increased rates to defend the Rubble.
US 10-yr treasury yield fell 1.7 basis points to 2.099%, after the Russian central bank raise key rates to 17% from 10.5% in order to defend the Rubble. The 10-yr yield had declined to 2.07%, lowest since Oct. 16.
Meanwhile, the difference between the yield on 10-yr treasuries and 10-yr Treasury Inflation Protected Securities fell to a four-year low of 1.59% yesterday. The decline indicates falling inflation expectations ahead of the Federal Reserve policy statement tomorrow.
The treasury yields may decline further if the preliminary PMI readings across the Eurozone and especially in Germany highlight a sharp slowdown in the activity.
US 10-yr Treasury yield Technical Levels
The yield has an immediate support at 2.07%, under which it can extend the fall to 2.00%. Meanwhile, resistance is seen at 2.135% and 2.15% respectively.
US 10-yr treasury yield fell 1.7 basis points to 2.099%, after the Russian central bank raise key rates to 17% from 10.5% in order to defend the Rubble. The 10-yr yield had declined to 2.07%, lowest since Oct. 16.
Meanwhile, the difference between the yield on 10-yr treasuries and 10-yr Treasury Inflation Protected Securities fell to a four-year low of 1.59% yesterday. The decline indicates falling inflation expectations ahead of the Federal Reserve policy statement tomorrow.
The treasury yields may decline further if the preliminary PMI readings across the Eurozone and especially in Germany highlight a sharp slowdown in the activity.
US 10-yr Treasury yield Technical Levels
The yield has an immediate support at 2.07%, under which it can extend the fall to 2.00%. Meanwhile, resistance is seen at 2.135% and 2.15% respectively.