FXStreet (Mumbai) – US Treasury yields erased minor gains to trade near 5-week lows on Wednesday after the Fed minutes showed policy makers are concerned regarding the Greek turmoil.
Yields drop on a slightly dovish tone
The benchmark 10-year Treasury yield fell to 2.203% from 2.239%. On similar lines, the two-year yield, which is sensitive to the short-term rate hike expectations fell from 0.577% to 0.55%.
The Treasury prices gained since the minutes carried a slightly dovish tone. The policymakers want to see more economic data in order to determine that the criteria for beginning policy normalization had been met. Many believed that “conditions for policy firming had not yet been achieved.”
Furthermore, the policy makers are also concerned about weak consumer spending and risks from China and Greece.
(Market News Provided by FXstreet)