Treasury Yields Pivot Lower After Yellen Silent On Policy Path

Treasury yields swung lower in the wake of Federal Reserve Chairwoman Janet Yellen's remarks after she made no mention of the Federal Reserve's current policy path. Earlier in the week, traders said they were setting up shorts, that is, betting on yields to head higher, on Yellen's comments. With Yellen staying on script, keeping most of her comments contained to financial stability, bond traders appeared to be disappointed. Modest selling of government paper turned into modest buying. Bond prices go up when yields go down. The 10-year Treasury note's yield fell 1.7 basis point to 2.179%, while the 30-year Treasury bond's yield dipped 1.5 basis point to 2.756%. The 2-year Treasury yield , which is more sensitive to Fed policy, fell and then rose again to 1.338%, trading close to break-even levels.

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