Thursday, May 4, 2017

Treasuries flattened as FOMC keeps interest rates unchanged.

Treasuries flattened as FOMC keeps interest rates unchanged. UST curve flattened yesterday after FOMC kept interest rate unchanged but expressed confidence in the U.S. economic expansion. U.S. economic data released yesterday also showed positive sign (ISM Non-Manufacturing Index was at 57.5, consensus: 55.8). 2y note picked up 3.6bps to 1.29%; 10y note climbed to 2.32% (+3.8bps). 30y bond yield was slightly lower at 2.97% (-0.1bps) as the Treasury Borrowing Advisory Committee (TBAC) recommended against issuing ultra-long bonds. The DXY index advanced to 99.21 (+0.24%).

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