Treasury yields end two-day rally ahead of Fed minutes

FXStreet (Mumbai) - The Treasury prices rose, pushing the yields lower for the first time in three days on increased speculation of dovish Fed minutes.

Currently, the 10-year treasury yield is down 2 basis points to 2.243%, while the two-year yield is down 2 basis points to 0.589%. The 30-year yield is somewhat resilient, trading largely unchanged at 3.042%.

The yields rose in the first two trading sessions of the week after the data in the US showed housing starts and building permits at multi-year highs in April.

However, other reports like retail sales, industrial production, producer prices and gross domestic product have all fallen short of economists’ expectations. This has triggered speculation that the minutes would show policymakers focusing more on economic slowdown and hinting at willingness to delay the interest rate hike. Consequently, the yields weakened.