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4/7/2017, 8:40 PM (Source: TeleTrader)
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Treasuries decline after Fed's Dudley comments

United States government bonds initially traded higher on Friday following President Donald Trump's decision to launch air strikes against a Syrian airbase last night, but started declining after New York Fed President commented on potential adjustments to the financial regulation.

William Dudley suggested the US government should consider limited adjustments to financial reforms adopted following the credit crisis. He also said he expects the Fed to start reducing its balance sheet later this year, but added the central bank may decide not to pursue this simultaneously with interest rate hikes.

The yield on 10-year Treasuries climbed 2.88 basis points to 2.3696% at 8:32 pm CET, while the yield on two-year bonds jumped 4.42 basis points to 1.2821%. The yield on 30-year debt increased 1.27 basis points to 2.9991% at the same time. In Europe, the yield on 10-year German Bunds dropped 3.5 basis points to 0.228%, while the yield on British gilts of the same maturity declined 2.4 basis points to 1.075%.

Breaking the News / IB