18.6 C
Munich
Wednesday, July 28, 2021

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

Must read

Raptors keeping options open heading in to draft

By Staff The Canadian Press Posted July 28, 2021 1:07 pm Smaller font Descrease article font size -A Larger font Increase article font size A+

Google’s Costs Have Catching Up to Do

Google’s great quarter may have been a little too great. ...

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

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Raptors keeping options open heading in to draft

By Staff The Canadian Press Posted July 28, 2021 1:07 pm Smaller font Descrease article font size -A Larger font Increase article font size A+

Google’s Costs Have Catching Up to Do

Google’s great quarter may have been a little too great. ...

Canada at the Tokyo Olympics: Who’s competing Wednesday night, Thursday morning – National

Canadian athletes will be busy competing in several events at the Tokyo Olympics Thursday, including the debut of golf and a chance for medals...