US Trea­suries (UST) Mar­ket

The Star Malaysia - StarBiz - - Treasury Pulse -

A string of good news, from strong labour mar­ket data to the dovish Fed, eased some pres­sure on the yield curve. Re­sul­tantly, the yield curve ex­pe­ri­enced a bear steep­en­ing with the 10/2 spread widen­ing to 17 ba­sis points (bps) from 15 bps.

How­ever, the steep­en­ing was lim­ited as the US gov­ern­ment shut­down en­tered the third week. It will be the long­est shut­down in US his­tory if there is no bill passed by this week. A pro­longed shut­down could start to take a toll on the US econ­omy as warned by Pow­ell.

As at yes­ter­day, the 2-,5- and 10-year bench­mark UST yields stood at 2.56%, 2.54% and 2.72%, re­spec­tively.

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