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6 Feb 2015
Short duration Treasury yields inch up slightly ahead of the US NFP data
FXStreet (Mumbai) - The yields at the short-end of the Treasury market curve have inched up marginally ahead of the release of the monthly jobs data in the US, while the yields at the long-end have weakened.
Yield curve flattens
The 1-year yield has inched up marginally to 1.98%, while the 2-year yield is up almost 1 basis points (bps) to 0.528%. Meanwhile, at the long-end, the 10-year yield is down almost 1 bps to 1.804%, while the 30-year yield has weakened marginally to 2.416%.
Moreover, the short-end yields, are more sensitive to the short-term interest rate expectations. However, the drop witnessed ahead of the data is not significant. Furthermore, the Non-farm payrolls (nfp) data due for release today is expected to show a slowdown in the pace of job additions in January. Thus, a weaker-than-expected data could reverse the situation by weakening the short-end yields more than the ones at the long-end of the market curve.
Yield curve flattens
The 1-year yield has inched up marginally to 1.98%, while the 2-year yield is up almost 1 basis points (bps) to 0.528%. Meanwhile, at the long-end, the 10-year yield is down almost 1 bps to 1.804%, while the 30-year yield has weakened marginally to 2.416%.
Moreover, the short-end yields, are more sensitive to the short-term interest rate expectations. However, the drop witnessed ahead of the data is not significant. Furthermore, the Non-farm payrolls (nfp) data due for release today is expected to show a slowdown in the pace of job additions in January. Thus, a weaker-than-expected data could reverse the situation by weakening the short-end yields more than the ones at the long-end of the market curve.