Market Snapshot: Treasury Yields Up Following FOMC Release

Yields on U.S. Treasury securities rose today following the release of Fed minutes, according to data from Tradeweb.

The bid yield on the 10-year U.S. Treasury note was 2.266% as of 3:20 PM EST, up 0.5 bps from yesterday’s close of 2.261%. Today’s intraday high was 2.297%, while the intraday low was 2.259%. 

The bid yield on the 2-year U.S. Treasury note was 0.876% as of 3:20 PM EST, up 2.5 bps from yesterday’s close of 0.851%. Today’s intraday high was 0.888%, while the intraday low was 0.859%.

These moves follow the release of FOMC’s October minutes indicating Fed officials believe it “may well become appropriate” to raise short-term interest rates at its December meeting but that any rate increase will likely be gradual.

The last time the Fed raised rates was June 29, 2006. The 10-year U.S. Treasury note closed at 5.201%, down 4.4 bps from the previous day's close of 5.245%. The 2-year U.S. Treasury note closed at 5.200%, down 7.3 bps from the previous day’s close of 5.273%. One month after the rate increase, on July 31, 2006, the 10-year note closed at 4.989% and the 2-year note closed at 4.967%. 

The charts below are based on indicative, real-time data from Tradeweb.

CHART 1: U.S. 10-Year Treasury Yields – November 19, 2014 – November 18, 2015 (12 Month View)

CHART 2: U.S. 2-Year Treasury Yields – November 19, 2014 – November 18, 2015 (12 Month View)