PRESS ROOM
Treasury yields rise modestly on stimulus hopes
Monday 26th October '20
10-year US Treasury yields rose above 0.8% on October 21 for the first time since June with bond markets beginning to price in the impending US fiscal stimulus. To contextualise this, 10-year Treasury yields were around 1.9% at the start of 2020 and around 2.7% at the start of 2019. Low long duration yields signify that markets expect monetary policy from the US Federal Reserve to be accommodative for a long period. An effective fiscal injection and positive third quarter economic data for the US could cause yields to rise from very low levels currently.