Dovish comments by Fed's Kaplan fail to move treasury yields
- Dallas Fed's Kaplan talks dovish, says a rate cut could happen in September.
- Treasury yields, however, remain resilient, with the 10-year yield adding more than two basis points.
Dallas Federal Reserve (Fed) President Robert Kaplan was out on the wires earlier today, stating there is potential for an interest rate cut in September.
So far, however, the US Treasury yields have ignored Kaplan's dovish comments.
As of writing, the two-year yield, which closely tracks short-term interest rate expectations, is trading largely unchanged on the day at 1.63 percent. The yield hit a low of 1.60 percent at 23:50 UTC yesterday.
Meanwhile, the 10-year yield has jumped from 1.618% to 1.634% in the last few minutes.
The spread between the 10 and two-year treasury yields is holding just above zero. The curve had inverted (turned negative) during Wednesday's US trading hours.
Looking forward, the yields may drop if the Fed President Powell uses his speech at the Jackson Hole Symposium to set the stage for aggressive rate cuts before the year-end.
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.