2-year bonds yield in the US reaches 9-year high

Baku. 21 September. REPORT.AZ/ The yield of 2-year state bonds in the US reached the maximum for last 9 years (1.4341%). 

Report informs, this is cause by a series of statements published after the next meeting of US Federal Reserve System (Fed).

Fed chief, Janet Yellen, said increase in discount rate will further continue and starting from October, balance will be lowered: “Low level of inflation does not necessarily mean that it will continue. The reason for the low inflation was the high employment rate of the dollar. Our economy is now on a strong path. Even I'm afraid of too much acceleration of our economy”.

Notably, the decision to increase discount rate in 2017 has been supported by 11 out of 15 Fed members. Also, the Fed confirmed the growth rate for 2018 at 2,1% and increased by 0.1% for 2019 year and confirmed at 2 %.

J. Yellen announces that the US economy is gradually reducing the Fed's balance and allowing for a higher rate of return. As a result, the US dollar strengthened: euro exchange rate fell from 1.20 to 1.1880 USD/EUR, pound sterling from 1.36 to 1.3480 USD/GBP, and US-dollar in Japan soared from 111.0 yen up to 112.5.