FXStreet (Mumbai) – The contraction in the US economic activity in the first quarter reported today has investors shifting their money into safe haven treasuries, leading to a drop in the short and long duration yields.
The yield on the two-year note, which mimics short-term interest rate expectations, fell two basis points to 0.61%, before recovering slightly 0.617%. The yield on the 10-year note fell 2.1 basis points to 2.109%, while the 30-year yield fell 2.7 basis points to 2.858%.
Treasury yields fell after the data from the Department of Commerce released today showed the US economy contracted 0.7% in Q1, which was better than the 0.9% decline economists had projected. However, the slower rate of decline failed to see yields rise as investors priced-in the fact that GDP was revised lower from 0.2% to -0.9%.
(Market News Provided by FXstreet)