Treasury yields rise for the second day

By FXStreet FXStreet (Mumbai) – The treasury yields in the US advanced for the second day, tracking the recovery in the oil prices and due to a better-than-expected US personal spending report.

The yield on the 10-year treasury note currently trades three basis points higher at 2.269%. The 2-yr yield, which is more interest rate sensitive, is up more than one basis points at 0.989%.

The rise was triggered by a 1% gain in the oil prices and was extended further after the data in the US showed household spending rose 0.3% after adjusting for inflation, the most in three months, while incomes climbed 0.3%, beating the forecast. Orders for durable goods were flat in November.

Flat yield curve last week

The yield curve flattened for the week ended December 18, 2015, as short-term yields fell. Meanwhile, long-term yields rose after Fed rate hike and despite the drop in oil prices.
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Source:: FX Street