US Treasury Yields Slide On Market’s Uncertainty

US Treasury yields slid at the close of Monday’s trading, impacted by investors and traders’ anticipation concerning the upcoming decisions by the Federal Reserve Bank.

The said anticipation caused risk appetite to retreat across global financial markets. The 10-year US Treasury yield fell to 1.414% from last week’s close of 1.415, indicating that yields are in a state of tight trading range due to deteriorating risk appetite.

There are expectations that Jerome Powell, Chairman of the Federal Reserve, could discuss accelerating the pace of tapering asset purchases in order to accelerate the US monetary policy’s access to normal conditions in post pandemic times.

Accordingly, the accelerated policy would mean raising interest rates, including a paralleling raise of borrowing cost, and thus providing a negative environment for the growth of the shares markets.

Such an environment is in favor of the US dollar, which benefits from continuing to be a high-yielding asset.