9/27/2017, 3:09 PM (Source: TeleTrader)
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Treasuries slump on prospects of Fed rate hike

United States government bonds extended losses recorded during the previous session on Wednesday, following hawkish comments by the Federal Reserve Chair Janet Yellen, who warned against moving "too gradually" with interest rate hikes. The market-assigned probability of an increase in the cost of borrowing in December subsequently climbed to 77.9% at 1:55 pm CET, according to CME's FedWatch tool.

The yield on 10-year Treasuries, which moves in the opposite direction relative to price, rallied 6.93 basis points to 2.305% at 2:59 pm CET, while the yield on two-year bonds, which are more sensitive to policy changes, jumped 3.91 basis points to 1.4747%. The yield on 30-year debt soared 7.27 basis points to 2.8466% at the same time.

Across the Atlantic, the yield on 10-year German Bunds, a benchmark for the Eurozone, were up by 7.3 basis points at 0.481%, whereas the yield on 10-year British gilts surged 6.8 basis points to 1.398%.

Baha Breaking News (BBN) / IB