US Treasuries (UST) Market

The US Treasury yields inched higher this week by 2bps driven the release of Trump’s White House Budget 2018 which increased the possibility of faster growth and inflation. Yields were weighed down after the FOMC minutes and the auction of US$26bil 2-year Treasury notes which recorded a strong bid-to-cover ratio of 2.90. At Friday’s 11am pricing, the 2-, 5- and 10-year UST traded at 1.29%, 1.78% and 2.24% respectively.