Treasury yields rise after another central bank considers taking the punch bowl away
Source: CNBC
U.S. government debt yields rose in a sudden move in early trading Thursday after the European Central Bank said it may adjust its guidance to investors given the strength in the European economy.
The yield on the benchmark 10-year Treasury note was lower at around 2.562 percent at 9:02 a.m. ET, while the yield on the 30-year Treasury bond was down at 2.909 percent. Bond yields move inversely to prices.
The ECB is just the latest central bank to signal that it may reconsider its massive bond-buying program, a key stimulus plan enacted to assist markets after the financial crisis. The Bank of Japan made headlines Tuesday after tweaking its own bond purchases, renewing concerns that the globe's major banks may be curtailing stimulus too quickly.
The Federal Reserve just raised rates in December for the third and final time in 2017. While the U.S. central bank has interacted that it sees three rate hikes this year, markets appear to be expecting fewer hikes given lagging inflation.
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Read more: https://www.cnbc.com/2018/01/11/bonds-and-fixed-income-fed-speech-bonds-data-politics-on-the-agenda-for-investors.html
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