NEW YORK - There's no bottom in sight for US Treasury yields after the Federal Reserve's aggressive rate cut failed to quell fears that the coronavirus is wrecking the global economy.
The Fed cut its main policy rate by a half-point in an emergency inter-meeting move on Tuesday. It came barely two hours after Group of Seven finance chiefs said in a statement that they were ready to act, which also failed to alleviate concern in markets. The yields on benchmark 10-year notes sank as much as 25.9 basis points to 0.9043 per cent on Tuesday, though it rebounded to finish the day around 1 per cent. In a sign of deep concern about the growth outlook, the yield on 30-year inflation-linked Treasuries fell below zero for the first time.
Yields on two-year Treasuries dropped as much as 28.1 basis points to 0.6223 per cent on Tuesday - still well above the record low of 0.14 per cent set in 2011. Overnight swaps are fully pricing in a 25-basis-point Fed cut later this month, with a total of 50 points seen by the end of June.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: The Straits Times - 🏆 8. / 63 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »