The 10-year U.S. Treasury yield retreated on Friday morning, having spiked to a 14-month high in the previous session, but remained above 1.68%.
The 10-year U.S. Treasury yield hovered around its 14-month high on Friday after the Federal Reserve on Friday declined to extend a rule expiring at the end of the month that relaxed the supplementary leverage ratio for banks during the pandemic. The yield on the benchmark 10-year Treasury note fell to 1.716% at around 1:00 p.m. ET. The yield on the 30-year Treasury bond rose to 2.451%. Yields move inversely to prices. The rule allowing banks to hold less capital against Treasurys and other holdings was implemented to calm Treasury markets during the crisis and encourage banks to lend. The decision could have some adverse effects, traders have warned, if in response banks sell some of their Treasury holdings.
