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Two-year Treasury yield near three-week highs

FXStreet (Mumbai) - The yields at the short end of the bond market curve in the US have shot higher after the Federal Reserve (Fed) announced an end of its QE program.

The two-year treasury yield is trading at 0.489%, a level last seen on Oct. 8. The yields Moreover, the two-year yield, which mimics short-term interest rate expectations, has shot higher despite the Fed stating that the interest rates would remain low for a considerable period of time.

However, the Fed officials did say that the labor market conditions improved while modifying their language from the “significant under utilization” to “under utilization of labor resources is gradually diminishing”. The statement is bullish on the economy and tilts a little on the hawkish side, which may have pushed the bond yields higher at the short end and well as the long end of the market curve.

Two-year Treasury Yield Technical levels

The yield has an immediate resistance at 0.5%, above which it can rise to 0.537%. On the flip side, the support is seen at 0.45% and 0.43%.

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