Connect with us

Hi, what are you looking for?

News

U.S. Government Bond Yields Slip Ahead of Fed Decision

U.S. Government Bond Yields Slip Ahead of Fed Decision

The Federal Reserve’s policy meeting could feature discussion on when and how to scale back bond purchases.



Photo:

olivier douliery/Agence France-Presse/Getty Images

U.S. government bond yields edged lower Wednesday, with investors awaiting details from the Federal Reserve’s policy meeting.

The yield on the benchmark 10-year Treasury note recently traded at 1.490%, according to Tradeweb, down from 1.498% at Thursday’s close. The 30-year bond yield traded at 2.182%, down from 2.199%.

Yields, which rise when bond prices fall, slipped before the 2 p.m. release of details from the central bank’s meeting. Analysts and investors generally expect the Fed to hold short-term interest rates near zero and keep buying at least $120 billion a month of Treasury and mortgage bonds, policies implemented over a year ago to help ease trading conditions and fuel the U.S. economic recovery after last year’s market turmoil. 

Chairman

Jerome Powell

has reiterated his belief that the U.S. economy hasn’t recovered sufficiently for the central bank to tighten monetary policy. Investors are watching the meeting for new forecasts, which could show officials expect to raise interest rates sooner than anticipated in March. Some analysts believe that officials may begin discussing when and how to scale back the pace of bond purchases.

Write to Sebastian Pellejero at sebastian.pellejero@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

You May Also Like

World

France, which has opened its borders to Canadian tourists, is eager to see Canada reopen to the French. The Canadian border remains closed...

Health

Kashechewan First Nation in northern Ontario is experiencing a “deepening state of emergency” as a result of surging COVID-19 cases in the community...

World

The virus that causes COVID-19 could have started spreading in China as early as October 2019, two months before the first case was identified in the central city of Wuhan, a new study...

News

A member of Pakistan’s parliament, Sania Ashiq Jabeen was born in Lahore and raised there. She studied at the National College for Drug Administration...