Treasury Yields Rise on Taper Talk
Yields on the 10-Year US Treasury benchmark rose today immediately following the release of the Federal Reserve Open Market Committee statement, according to Tradeweb data.
The bid yield on the 10-year US Treasury benchmark closed at 2.72%, yesterday, and climbed to an intra-day high of 2.8% at 3:34 PM ET today.
According to The Wall Street Journal’s MoneyBeat, the Fed’s discussion of impending tapering had an immediate effect on equity and fixed income markets:
“The Federal Reserve continues to stress tapering isn’t tightening. The markets are having a hard time grasping that message.
Stocks reversed early gains and headed lower Wednesday afternoon after the minutes from the central bank’s most recent policy meeting showed the Fed expects to start dialing back on stimulus in the ‘coming months.’”
The following chart depicts 2-day intra-day yields on the 10-year benchmark, based on indicative, real-time data from Tradeweb.
CHART: US Treasury 10-Year Bond Yields – November 19, 2013-November 20, 2013 (2-Day Intraday View)