20.07.201723:21:00UTC+00Treasury Yields Sable as Traders Assess Draghi’s Speech

Treasury yields ended little changed after the European Central Bank ruled to keep its policy stance, but underlined that it could raise the size and scope of its bond purchasing program to aid the eurozone reach its inflation target.

Remarks by ECB President Mario Draghi helped to cool the impact of comments made by the top central banker later in June, which were perceived as laying out the stage for the unwinding of easy-money policies, jolting global government-bond markets.

Yields on U.S. government bonds retreated in the morning as Draghi said that he was still not perceiving indications of a sustainable increase in inflation, but he was more optimistic regarding other indications of economic health in the eurozone.

The yield on the 10-year benchmark Treasury yield ticked down 0.2 basis point at 2.266 percent. The two-year yield rose 0.4 basis point to 1.360 percent, while the yield on the 30-year Treasury note fell 0.8 basis point to 2.838 percent.

European government bonds attracted buying, putting downward pressure on yields. The yield on the 10-year German bund slid 1.7 basis point to 0.526 percent. The yield on the 10-year French government bond also fell 2.4 basis points to 0.774 percent.