US 10-year Yield Posting Record Low

The yield on 10-year (inflation-adjusted) US Treasury bonds fell to a new low of -0.95% on Wednesday after the Federal Reserve reiterated its interest-rate keep plan to its lowest levels in the foreseeable future.

Jerome Powell, Chairman of the Federal Reserve, said that monetary policy will remain accommodative until the Federal Reserve trusts that the turmoil caused by the epidemic and the economic fallout is over. The Fed has said it will expand its programs to keep dollar financing readily available to foreign central banks through March 2021.

The Federal Reserve is unlikely to stop pumping money into the ecosystem any time soon, inflation expectations are rising and yields for the inflation-adjusted 10-year bond could continue to decline, boosting the appeal of gold.