US 10-year treasury yield drops below 2%

  • The US 10-year bond yield hits lowest since November 2016. 
  • Fed kept rates unchanged but signaled readiness to act, if required. 

The yield on the 10-year US Treasury note fell below 2% soon before press time to hit the lowest level since November 2016. 

The four basis point drops could be associated with the US Federal Reserve's decision to keep rates steady but signal a shift to a more dovish stance. On Wednesday, the US central bank pointed to possible interest rate cuts in the future, citing rising “uncertainties” about the economic outlook.

The Fed said it would “act as appropriate to sustain the expansion” and would “closely monitor the implications of incoming information for the economic outlook”.

Chairman Powell, while speaking at the policy presser, said that the case for additional accommodation and uncertainty surrounding the baseline outlook have increased since the last meeting. 

The dot plots showed the Fed is unlikely to cut rates this year. Even so, the yields are on the retreat and the money markets have priced in 100% probability of a rate cut in July. It appears the Fed's decision to remove the word "patience" from the forward guidance on interest rates has been taken a sign the bank is ready to act if necessary. 

As of writing, the yield is trading at 2% – down 18 basis points on a month-to-date basis and 81 basis points on a year-to-date basis. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.


GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.


USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.


Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more