U.S. Treasury yields inch lower in range bound trade


U.S. Treasury yields fell slightly in early Friday trade but remain in a tight range in the wake of the Federal Reserve’s policy meeting on Wednesday.

What are Treasurys doing?

The 10-year Treasury note yield
TMUBMUSD10Y,
0.674%
fell 1.3 basis points to 0.669%. The 2-year note rate
TMUBMUSD02Y,
0.137%
stood at 0.131%. The 30-year bond yield
TMUBMUSD30Y,
1.418%
edged 1.3 basis points lower to 1.414%. Bond prices move inversely to yields.

What’s driving Treasurys?

The bond market has continued to trade in a range-bound fashion after the Federal Reserve on Wednesday underlined its commitment to keeping monetary policy easy for an extended period and warned of only a slow economic recovery.

At its most recent meeting, central bank officials indicated they did not expect any rate hikes at least after 2023.

Investors have also started to fret that the U.S. recovery is stalling again, without an additional injection of fiscal stimulus funds into consumers’ wallets from Congress.

In U.S. economic data, the University of Michigan’s consumer sentiment index for September is due at 10 a.m. ET, with analysts putting out a consensus estimate of 75.9.

Some speakers from the Federal Reserve will be watched on Thursday, including St. Louis Fed President James Bullard.

What did market participants’ say?

” Unless consumer sentiment surprises this morning, yields are set for a small rally,” said Jim Vogel, an interest-rate strategist at FHN Financial.



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