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29 Oct 2014
Treasuries trade flat ahead of the US Fed meet
FXStreet (Mumbai) - The yields across the long end and the short end of the US bond market curve are trading flat ahead of the Federal Reserve (Fed) meet today.
The ten-year yield is trading at 2.29%, largely unchanged from the yesterday’s New York closing of 2.298%. The Fed is widely expected to announce the end of its monthly bond purchase program today. Moreover, the taper begun in December 2013 when the Fed announced a first cut of USD 10 billion to the monthly bond buying program of USD 85 billion. Since then, the central bank has trimmed its bond purchase program at a pace of USD 10 billion in every policy meet. The Fed is widely expected to announce a final cut of USD 15 billion today.
However, the Fed has maintained through the Taper process that it intends to keep the interest rate at record low levels for a considerable period of time post end of QE. Thus, the equity markets have gained across the globe today on hopes that the Fed would continue to remain dovish on interest rates.
Ten-year yield Technical levels
The yield is trading near an immediate resistance of 2.3%, above which it can rise to 2.345%. On the other hand, a failure to rise above 2.3% today, shall push the yields lower to 2.2%.
The ten-year yield is trading at 2.29%, largely unchanged from the yesterday’s New York closing of 2.298%. The Fed is widely expected to announce the end of its monthly bond purchase program today. Moreover, the taper begun in December 2013 when the Fed announced a first cut of USD 10 billion to the monthly bond buying program of USD 85 billion. Since then, the central bank has trimmed its bond purchase program at a pace of USD 10 billion in every policy meet. The Fed is widely expected to announce a final cut of USD 15 billion today.
However, the Fed has maintained through the Taper process that it intends to keep the interest rate at record low levels for a considerable period of time post end of QE. Thus, the equity markets have gained across the globe today on hopes that the Fed would continue to remain dovish on interest rates.
Ten-year yield Technical levels
The yield is trading near an immediate resistance of 2.3%, above which it can rise to 2.345%. On the other hand, a failure to rise above 2.3% today, shall push the yields lower to 2.2%.