Treasury yields drop ahead of Yellen speech

Yields on the short duration and long duration treasury notes in the US fell amid talk of negative rates in the US and sliding oil prices.

At the time of writing, 10-yr treasury yield in the US was down 1 basis point at 1.865%. The 2-yr yield, which mimics rate hike bets, was down more than 1 basis point at 0.855%.

Fed’s Williams was on the wires earlier today stating Fed has studied negative rates, but has not intention to implement the same in the foreseeable future. However, his comments were read as dovish by the markets, therefore, yields dropped.

Furthermore, losses in oil prices also weighed over the treasury yields. The bond traders now await Yellen speech. The central bank chief is widely expected to sound cautiously dovish.

Yields on the short duration and long duration treasury notes in the US fell amid talk of negative rates in the US and sliding oil prices.

(Market News Provided by FXstreet)