Treasury Yields Sink After Fed Pledge Of Low Rates


Salon Staff
January 25, 2012 11:09PM (UTC)

Treasury yields are falling after the Federal Reserve said it expects to keep its benchmark interest rate near zero until late 2014.

Short-term rates sank in Wednesday afternoon trading. The yield on the 5-year note plunged to 0.80 percent from 0.90 percent late Tuesday, a sharp move in the Treasury market. The two-year yield dropped to 0.22 percent from 0.24 percent.

Advertisement:

The Fed said it's keeping rates low to help a weak but slowly growing economy. That's a change from the Fed's previous pledge to keep rates near zero until the middle of 2013.

In other trading, the 10-year Treasury note is up 65.6 cents for every $100 invested. The higher price pushed its yield back below 2 percent. It fell to 1.98 percent from 2.06 percent late Tuesday.


Salon Staff

MORE FROM Salon Staff

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••


Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •