Treasury yields drop on Fed comments

Prices were higher on US Treasury bonds Friday and yields dropped as several officials of the Federal Reserve made comments indicating that investors should not look at this week’s interest rate cut by the Fed as a bail-out for them.

One of them, Fed vice-chairman Donald Kohn, speaking at a conference in Frankfurt, German, said that Fed officials focus “sharply on the macroeconomy” and to do not take into account profits or losses by investors when they make their policy decisions.

At mid-afternoon in New York, 2-year Treasury bonds were yielding 4.05 percent, while 5 year issues were at a yield of 4.3 percent, 10-year paper yielded 4.63 percent and 30-year bonds were yielding 4.88 percent.

Story link: Treasury yields drop on Fed comments