Early declines in the 30-year Treasury yield were reversed on Monday, according to Market Watch, with investors being reported of buying long-term treasuries after a low lasting two years.
The yield fell 1.1 points from Friday afternoon, dropping to 2.740 percent down. According to Market Watch, there was talk to language being altered to the policy statement that declares the Fed will maintain lower rates “for a considerable time.” Some believe, say Market Watch, that this action could be indicative of a rate hike sometime within the next six months.
This talk, which was heightened by a strong industrial production on Monday, was not the only change that Monday’s market saw, nor the only waves. According to Market Watch, the two-year yield went up to 0.5854 percent, the five-year yield was up to 1.574 percent, and the 10-year yield moved to a high of 2.136 percent.
The yields to treasury bonds vary inversely with price. For example, it is generally accepted that when the bond rate increases, prices on the market decrease, and vice versa. This could be good for some or for the moment; however, depending on which end of the equation you’re on, you will either benefit from a high yield or high price, which generally don’t go hand in hand. This also is the reasoning that some people suspect this could be an indicator of a price spike soon.
Market Watch also put together a list of other key movements in the market on Monday, including the decline of Greek sovereign debt yields, the rise of the German 10-year Bund Yield, and the ever-falling prices of crude oil.