9/18/2017, 2:01 PM (Source: TeleTrader)
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Treasuries decline as Fed decision looms

United States government bonds traded slightly lower on Monday as investors looked ahead to the Federal Reserve's upcoming meeting on September 19-20.

The American central bank is widely expected to keep interest rates unchanged and to announce the unwinding of its $4.5 trillion asset portfolio. According to the CME's FedWatch tool, the market-assigned probability of no change in interest rates stood at 98.6% as of 12:42 pm CET, while the probability that the Fed will raise rates in December was equal to 56.9%.

The yield on 10-year Treasuries increased 0.88 basis points to 2.2111% at 1:33 pm CET, while the yield on two-year bonds rose 0.83 basis points to 1.3886%. The yield on 30-year debt was 0.54 basis points higher at 2.7754% at the same time. Meanwhile, in Europe, the yield on 10-year German Bunds grew 0.9 basis points to 0.442%, while the yield on 10-year British gilts eased 0.7 basis points to 1.302%. Bond yields move in the opposite direction relative to prices.

Baha Breaking News (BBN) / IB