US 10-year yield hits 8-month low despite hawkish Fed hike

• The US 10-year Treasury yield fell to 2.757 percent - the lowest level since early April.
• The yields remain depressed despite the hawkish Fed rate hike.

The treasury yields continue to feel the pull of gravity, despite the hawkish Fed rate hike.

The 10-year yield is currently trading at 2.755 percent - a level last seen in April - having clocked a high of 2.787 percent in the overnight trade.

The US Fed hiked rates by 25 basis points as expected, but also signaled that interest rates could be hiked two times in 2019. Markets, however, were expecting the Fed to signal a rate hike pause in 2019.

The equities, however, turned risk-averse in response to hawkish rate forecasts. The Dow Jones Industrial Average (DJIA) fell 352 points. As a result, the 10-year yield's rise to 2.787 percent was short-lived.

Looking ahead, the 0.70 percent drop in the S&P 500 futures indicates that treasuries could continue to draw haven bids. So, for the 10-year yield, the path of least resistance is to the downside.