Treasury Taper On Hold: 10yr Could Hit 2.4 Percent

Yield on the U.S. 10-year treasury dropped to 2.864 percent on today's market in response to the withdrawal of Larry Summers from the Fed chairman race. Summers seemed the most likely pick for Federal Reserve Chairman just a few weeks ago, and his reputation led to a belief that the Central Bank would follow a harsher policy next year.

His withdrawal from the race has made it more likely that the Federal Reserve will continue soft policies next year. In a new report, Royal Bank of Scotland analyst John Briggs...