January 3, 2019 / 7:55 PM / 6 months ago

Two-year Treasury yield dips below Fed's effective policy rate, first time since 2008

NEW YORK, Jan 3 (Reuters) - The U.S. two-year Treasury note yield briefly dropped below 2.4 percent, reaching parity with the federal funds effective rate for first time since 2008.

The fed funds effective rate is the Federal Reserve’s key policy rate. The market move suggests investors believe the central bank will not be able to continue to tighten monetary policy as its forecast suggests. (Reporting by Kate Duguid Editing by Tom Brown)

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