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14 Jan 2015
US 30-yr treasury yield hits record low
FXStreet (Mumbai) - A weak advance retail sales data in the US triggered a rally in Treasuries, which pushed the yield on the 30-yr Treasuries to a record low of 2.458%.
The 30-yr yield now trades 1.6 basis points lower at 2.465%, up slightly from the record low of 2.458%. The advance retail sales number in the US came-in at -0.9%, missing the estimate of -0.1%, and down from the November’s 0.7% rise. The retail sales ex-auto number also missed forecasts to print at -1.00%.
Moreover, a weak December advance retail sales in data contradicts the Federal Reserve’s view that falling energy prices is likely to result in increased consumption. Thus, markets are most pricing-in a delay in the interest rate hike in the US due to which the 30-yr yield plummeted to record lows. Meanwhile, the 10-yr yield also weakened to 1.784%, before recovering slightly to trade at 1.789%; down 10.1 basis points lower for the day.
The 30-yr yield now trades 1.6 basis points lower at 2.465%, up slightly from the record low of 2.458%. The advance retail sales number in the US came-in at -0.9%, missing the estimate of -0.1%, and down from the November’s 0.7% rise. The retail sales ex-auto number also missed forecasts to print at -1.00%.
Moreover, a weak December advance retail sales in data contradicts the Federal Reserve’s view that falling energy prices is likely to result in increased consumption. Thus, markets are most pricing-in a delay in the interest rate hike in the US due to which the 30-yr yield plummeted to record lows. Meanwhile, the 10-yr yield also weakened to 1.784%, before recovering slightly to trade at 1.789%; down 10.1 basis points lower for the day.