Wall Street opens lower ahead of FOMC, Treasury yields dip

Wall Street opens lower ahead of FOMC, Treasury yields dip

26 October 2015, 15:22
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U.S. stocks opened in the red on Monday ahead of this week's Federal Reserve policy meeting and quarterly earnings reports from key companies including Apple.

The Dow Jones industrial average dipped 0.20%, the S&P 500 lost 0.32% and the Nasdaq composite index dropped 0.30%.

In the bond market, Treasury yields declined on Monday.

Investors have dropped the expectations that the Fed will increase interest rates this week.

Ultra-soft monetary policy around the world will also make it more difficult for the Fed to hike rates, analysts say.

On Friday, the People’s Bank of China cut interest rates for the sixth time in nearly a year, while the European Central Bank hinted on Thursday at potentially expanding its monetary stimulus.

The yield on the 10-year Treasury dropped 2.1 basis points to 2.062%, according to Tradeweb. One basis point is equal to one hundredth of a percentage point.

The yield on the 30-year bond lost 2.9 basis points to 2.869% and, among shorter maturities, the yield on the two-year Treasury note , inched 0.4 basis point lower to 0.637%.

Bond yields fall when prices rise, and vice versa.

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