Yields on Two-Year Note Sets RECORD low .4066%

Treasury two-year yields touched a record low as a report showed U.S. manufacturing growth slowed, encouraging speculation that the central bank will increase purchases of government debt. U.S. notes rallied for a third consecutive week as Federal Reserve Bank of New York President William Dudley said the outlook for job growth and inflation is “unacceptable” and that more monetary easing is probably needed to spur growth and avert deflation. “It’s all about the Fed,” said Richard Bryant, senior vice president for fixed income in New York at MF Global Holdings Ltd., a broker of exchange-traded futures. “The Fed has communicated its intent to reflate our way out of the current environment. That has allowed yields to remain at these historically low levels.” The benchmark 10-year note yield was little changed at 2.51 percent at 4:15 p.m. in New York, according to BGCantor Market Data. The price of the 2.625 percent security maturing in August 2020 was 100 31/32. The two-year note yield was 0.41 percent after falling to the record low of 0.4066 percent. Read more here:

Yields on Two-Year Note Sets RECORD low .4066%