The slippage in the U.S. 10-year Treasury yield may reflect investors’ expectations of slower long-term domestic economic growth rather than looser financial conditions, Dallas Federal Reserve President Robert Kaplan said on Wednesday.
“That is not a sign of easy financial conditions,” he said of the benchmark U.S. yield which has fallen nearly 10 basis points so far this year.
“That may be a sign of worry about future growth,” Kaplan told reporters after participating on a panel with New York Fed President William Dudley about regional economic trends sponsored by Hearst and Partnership for New York City.
Source: Investment Cnbc
US 10-year yield flashes possible warning: Dallas Fed's Kaplan