The yield on the 2-year U.S. Treasury note dipped Wednesday as global bond markets stabilized following the previous session's sell-off on the back of a surprise policy shift from the Bank of Japan.
Treasurys
The yield on the 2-year Treasury bond fell nearly 5 basis points to 4.221%, while the yield on the benchmark 10-year Treasury note traded about a basis point lower to 3.675%. Yields move inversely to prices.
Risk-on sentiment returned on Wall Street Wednesday as investors assessed better-than-feared earnings from Nike and FedEx, sending shares of both companies higher.
Consumer confidence data for December came in at the highest level since April, further fueling bullish sentiment.
Global bond markets sold off on Tuesday after the Bank of Japan tweaked its yield curve controls, in a move aimed at cushioning the effects of protracted monetary stimulus measures.