Treasury yields continue range bound action

Treasury yields continue to trade in the sideways manner, repeatedly failing to extend the Trump rally.

At the time of writing, the 10-year treasury yield around 2.48%. The yield clocked a high of 2.55% on Jan 26, but since then has failed to hold above 2.5%.

On similar lines, the 2-year yield is having a tough time extend gains above 1.25%.

The Fed’s policy statement was more cautious than many expected. Furthermore, Trump’s policies have created an environment of uncertainty, which is capping gains in the treasury yields. The yields may break higher today if the US wage growth numbers beats estimates.