Treasuries Have Banner Day on Signs Fed Rate Hikes May Be Done
- Yields gapped lower when trading resumed after US holiday
- Market pricing suggests Fed won’t hike again this year: Nomura
This article is for subscribers only.
Treasury yields posted some of their their biggest single-day declines all year on expectations that the Federal Reserve is likely done raising interest rates.
US 10-year yields slid more than 18 basis points to 4.62% at one stage Tuesday, a day after two Fed officials expressed the idea that the recent surge in US yields may have done some of the job of tightening financial conditions for them. It was down about 15 basis points at 3 p.m. New York time. The cash market was closed for a public holiday on Monday.