10-year Treasury yield higher on Fed SLR update

Friday, 19. March 2021 14:46

The yield on the benchmark 10-year Treasury note jumped on Friday in response to the Federal Reserve's announcement that it won't extend its exemption on the supplemental leverage ratio (SLR) past March 31.

The exemption set to expire at the end of the month allowed banks to exclude Treasuries and deposits with the Fed when calculating the SLR and was introduced at the start of the COVID-19 turmoil in financial markets last year.

The yield on the 10-year T-note was up 2.5 basis points to 1.737% at 9:41 am ET following the announcement.

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Breaking the News / JC