Ten-year treasury yield hovers around 2%

FXStreet (Mumbai) - The yield on the benchmark 10-yr treasury note in the US witnessed moderate gains in Europe to trade around 2% ahead of the monthly inflation report in the US.

The yield fell below 2% after the Fed March 2016 rate hike bets fell sharply on the back of a weaker-than-expected retail sales report. However, the risk-on in the European equity markets helped the yield enjoy moderate gains.

At the moment, the 10-yr yield is trading around 2.00%, up 2.5 bps on the day. The more policy sensitive 2-yr yield is trading 1.2 basis points higher at 0.573%.

The immediate focus is now on the Us CPI report, which could show the cost of living dipped 0.1% y/y in September.