U.S. Treasury yields fell, and the Federal Reserve is considering pausing or slowing down QT until the U.S. resolves the debt ceiling issue

Wallstreetcn
2025.02.19 19:31

The yield on the U.S. two-year Treasury note fell by about 4 basis points after the release of the Federal Reserve's meeting minutes, refreshing its daily low to 4.2676% at 03:19 Beijing time.

The yield on the 10-year U.S. Treasury note briefly dropped by more than 2 basis points, also falling to a daily low of 4.5268%.

The spread between the 2-year and 10-year U.S. Treasury yields narrowed to 1.8 basis points, falling below the +25.5 basis points mark.

"New Federal Reserve Correspondent" Nick Timiraos believes that the Federal Reserve stating "considering pausing or slowing QT (quantitative tightening) until the debt ceiling issue is resolved" may be appropriate