Treasury yields muted as calm returns to bond markets after sell-off
U.S. Treasury yields were muted on Wednesday as global bond markets stabilized following the previous session’s sell-off on the back of a surprise policy shift from the Bank of Japan.
The yield on the benchmark 10-year Treasury note was just under a single basis point higher at 3.6935%, while the yield on the 30-year Treasury bond was up by around 1.1 basis points at 3.7466%. Yields move inversely to prices.
Global bond markets sold off on Tuesday after the Bank of Japan tweaked its yield curve controls to allow the yield on its 10-year JGB to move 0.5% either side of its 0% target, up from 0.25% previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures.
Risk-on sentiment returned in early premarket trade on Wall Street Wednesday as investors digested earnings from Nike and FedEx that sent both companies higher in after-hours trading.
Third quarter current account data, November existing home sales and December consumer confidence figures are all due out of the U.S. on Wednesday morning.
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