Treasurys Mixed as 30-Year Bond Yield Sinks; So-Called Long Bond Yield Hits Nine-Month Low
The 30-year bond stole the show Thursday, with its yield sinking to a nine-month low in an otherwise mixed trading session for the U.S. Treasurys market.</br></br>In late-afternoon trading, the so-called long bond rallied 10/32 in price to yield 3.526%, according to Tradeweb. The yield sunk as low as 3.492%, the first time it has crossed under 3.5% since July.</br></br>Benchmark 10-year notes rose 2/32 to yield 2.685%, while two-year notes shed a fraction in price to yield 0.450%. Bond yields move inversely to their prices.</br></br>Selling shorter-end Treasurys in favor of longer maturities is a powerful trade that has been in play since March 19, when the Federal Reserve's policy update stirred up concerns about the timing of its first rate increase.</br></br>The Fed's statement "was a good reminder that the rate hike can come sooner or later than the Fed's base case," said Jake Lowery, portfolio manager at ING U.S. Investment Management. "There will be greater volatility [in fixed income] than when the Fed's policy was calendar- or threshold-based."