The rate-indicative 10-year Treasury yield dropped sharply Wednesday morning following investor concerns about the Federal Open Market Committee’s failure to take expected quantitative easing action to improve the economy.
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“The Treasury market waited for the FOMC statement and was disappointed,” said John “Rocket” Spinello, a senior vice president on the trading desk in Jefferies’ fixed income division, in a Wednesday morning report. Subsequently to the FOMC inaction, there was “surprising price action that took 10-year notes sub 2.60%,” he said.
The 10-year yield as of late Wednesday morning had fallen to levels around 2.54%. The 10-year had hit highs approaching 2.7% just the day before.
