Treasuries rally back in aftermath of Fed rate cut

Thursday, 19. September 2019 14:38

Sovereign securities issued by the United States jumped on Thursday before the opening bell on equity markets in New York while the dollar advanced against most major counterparts. Traders returned the valuations near levels from before the yesterday's update by the Federal Reserve.

Policymakers cut interest rates. They provided little guidance about its next step, declining to show a bias toward more easing, but traders focused on the determination to wait and see according to incoming macro data. In the meantime, decisions by other central banks provided a similar picture. Wall Street was looking to start with a minuscule retreat in main stock indexes and precious metals gained.

The yield on the two-year Treasury note slipped 2.4 basis points to 1.734% at 8:36 am ET. The ten-year rate was down 2.7 points at 1.77% and the 30-year measure weakened 2.9 points to 2.216%. Equivalent futures rose by 0.05%, 0.22% and 0.39%, respectively. Yields move inversely to debt prices.

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