Treasury yields uninspired by US data

FXStreet (Mumbai) – The yield on the long duration and short duration treasuries in the US did not respond to the sharp rise in the personal spending in May reported in the US today.

The official data showed personal spending rose 0.9% in May, its biggest rise since August 2009. Personal income rose 0.5%, while the Fed’s preferred gauge of inflation – PCE rose 1.2%.

Despite the upbeat spending report, the yield on the 10-year treasury note remained in the range of 2.395% to 2.40%. Even the 2-year note, which mimics short-term interest rate expectations, stayed largely unchanged at 0.704%.

Moreover, the treasuries also ignored the weekly jobless claims figure, which stayed below 300K for the 16th consecutive week.

The yield on the long duration and short duration treasuries in the US did not respond to the sharp rise in the personal spending in May reported in the US today.

(Market News Provided by FXstreet)