BONDDESK® | Rate Brief
Rate Brief 10-20-2014
- Treasury yields saw an historic drop as worries of a slowdown in the global economy coincided with a spike in European peripheral yields and worries of an Ebola outbreak in the U.S.
- The strong bid pushed long dated yields lower by ~34bps making for the largest drop in long dated yields since March 18, 2009, when the Federal Reserve announced its $1 trln asset purchase program.
- Sellers regained control over the next couple of sessions with those yields erasing all of their declines.
- The Fed still remains on track to taper its asset purchase program to zero at its October 28/29 policy meeting.