Treasury Yield Premium Over G-7 Peers Widens to Most Since 2007
- Fed set to issue minutes of October meeting Wednesday
- Bigger spread makes Treasuries cheap: Nikko Asset's Bridges
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The extra yield Treasury two-year notes offer over their Group-of-Seven peers widened to the most since 2007 as the Federal Reserve considers raising interest rates as soon as next month.
The spread reached about 77 basis points before the Fed’s release on Wednesday of minutes from its Oct. 27-28 meeting. Policy makers said after that session that they’ll consider raising the overnight target rate at their Dec. 15-16 gathering. By contrast, the European Central Bank is considering adding monetary stimulus.