Warren Sulmasy’s Market Comment for Monday, January 29:
U.S. Treasury Market:
● 5 year yield .895
● 10 year yield 1.99
● 30 year yield 3.18
The U.S. Treasury bond prices were lower again today. The Federal reserve will speak tomorrow. There is speculation that the Federal reserve will slow down some of the stimulus measures instituted over the last couple of years such as QE (quantitative easing) and operation twist (FED buys government and mortgage debt). As a result of this speculation, todays $35 U.S. 5 year Treasury note auction yield was the highest since March 2012. It is worth noting that the 10 year Treasury bond yield was just shy of yesterdays 2 percent yield. That was the 10 years Treasuries highest yield since April 18, 2012.