U.S. Treasury Bond Yields Stabilize Ahead of Fed Meeting

Treasury bond yields on the United States stabilized on Monday, amid anticipation fort the upcoming Federal Open Market Committee (FOMC) meeting by the U.S. Federal Reserve.

The monetary policy meeting takes place on Tuesday and Wednesday.

Todays’ stability in Treasury yields after last week’s fluctuations, is due to relatively reduced selling pressures.

The yield on the benchmark 10-year Treasury bond decreased by a single basis point to 1.276% from 1.286% by the end of last week.

The return on the 30-year Treasury bond maintained its level at 1.925%, while the two-year bond yield fell marginally to 0.194%.

The FOMC policy statement, which is set to be released on Wednesday, will set the tone for markets in terms of expectations for the coming period, especially in terms of the highly anticipated tapering.

The Fed recently vowed to begin a discussion about reducing the current pace of asset purchases from $120 billion a month, before it starts to raise interest rates from their historically low levels, a move the Fed said will only happen when recovery materializes and not as a quick response to the temporary increase in inflationary pressures.