The U.S. 10-year Treasury note yield is now down more than 20 basis points in a span of just four days, which is not the result of Fed’s policy rates but rather a shift in US Treasury borrowing.
The US 10-year bond yields fell from 4.877% on October 30 to 4.663% on the trading hour of Asian markets on November 3, marking a drop of around 21 basis points. This is the largest pullback so far since early October.
Long-term bond yields had been retreating even before the Federal Reserve announced the hold rate on Wednesday, which could be the result of an announcement by the US Treasury department slowing the pace of it issuing longer-term debt.
The Treasury said that it would continue to increase issuance of shorter-term debt notes, which pressured returns of long-dated bonds.
