MARKET OVERVIEW - US Treasury Yields High Enough to Attract Investors

Forex - Michael Brown from Pepperstone stated that investors seem to be entering U.S. Treasury bonds to capture the still high yields following last week's sell-off. The yield on the 10-year U.S. Treasury bonds, approximately 4.305%, is trading about 15 basis points below the peak seen on election night. Brown remarked, "To me, this indicates that investors are taking steps to lock in yields at current levels," arguing that this is a sensible way to move considering the likelihood of the Fed lowering the federal funds rate to around 3% neutral level by next summer.