Yields fall on 2 and 5-year Treasury bonds

There were mixed results among US Treasury bonds after the Federal Reserve decided to cut interest rates by 0.5 percent to 4.75 percent on Tuesday.

Prices were up and yields lower on shorter-dated notes, but prices fell and yields rose on longer dated issues.

Two-year Treasury bonds yielded 3.982 percent at late afternoon and five year paper was yielding 4.170 percent, while ten-year bonds were up to a yield of 4.482 percent and thirty year issues yielded 4.757 percent.

Even though the Fed surprised by cutting rates by a full half percentage point rather than doing the expected and cutting by only a quarter percentage point, some analysts still see room for more cuts in a statement that did not repeat August’s statement that inflation was the Fed’s “predominant” concern, but still said that “some inflation risks remain”.

Story link: Yields fall on 2 and 5-year Treasury bonds