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16 Sep 2015
Two-year treasury yield extends gains ahead of US data
FXStreet (Mumbai) - The yield on the two-year treasury note in the US moved higher ahead of the US CPI data after it clocked a 4-year high of 0.8% on Tuesday.
Focus on Core-CPI
The core CPI figure is likely to hog the limelight as it strips out the volatile energy prices and gives a clear picture of whether the inflation is moving towards fed’s target of 2%. The two-year treasury yield, which mimics rate hike expectations, could extend gains if the core CPI pushes up rate hike probability.
The yield had dipped earlier today 0.782%, but quickly recovered losses to hit a session high of 0.819%. AT the moment, the yield is trading at 0.81%; up 1.3 basis points on the day.
The two-year treasury yield was largely restricted to a narrow range of 0.60% to 0.75% for almost a month, before it broke higher on Tuesday.
Focus on Core-CPI
The core CPI figure is likely to hog the limelight as it strips out the volatile energy prices and gives a clear picture of whether the inflation is moving towards fed’s target of 2%. The two-year treasury yield, which mimics rate hike expectations, could extend gains if the core CPI pushes up rate hike probability.
The yield had dipped earlier today 0.782%, but quickly recovered losses to hit a session high of 0.819%. AT the moment, the yield is trading at 0.81%; up 1.3 basis points on the day.
The two-year treasury yield was largely restricted to a narrow range of 0.60% to 0.75% for almost a month, before it broke higher on Tuesday.