Treasury yields plunged after the Federal Reserve pledged no limit asset purchases

Treasury yields plunged on Monday after the Federal Reserve pledged asset purchases with no limit to support the markets amid the coronavirus pandemic.The yield on the benchmark 10-year Treasury note dropped 25 basis points to 0.692% following the Fed announcement. The rate last traded at 0.82%. The yield on the 30-year Treasury bond fell 20 basis points to 1.34%. The Fed said Monday it will continue its asset purchasing program including Treasurys and commercial mortgage-back securities “in the amounts needed to support smooth market functioning and effective transmission of monetary policy” (CNBC)


Source: Danareksa Sekuritas Debt Research
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