Treasury yields plunged as soft manufacturing data revived questions about the possible timing of Federal Reserve’s interest rate hike over the following year.
According to the Institute for Supply Management, manufacturing activity slumped to 48.6 in November, from 50.1 in October. The likelihood of a Fed rate increase this month has lowered. Futures markets pointed to 75% probability of a rate hike in December.
The yield premium investors get for purchasing longer-term debt slimmed at 1.25 percentage points, its narrowest in nine months. The yield on the benchmark 10-year US government note slipped to its one-month low of 2.155%, while the two-year yield fell to 0.907%, its weakest in nearly two weeks.
The material has been provided by InstaForex Company – www.instaforex.com