The yield on us treasury securities maturing

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Imagine that the market came to believe that the Federal Reserve was going to increase the Federal Funds rate during 2018 by less than previously expected. Nothing else has changed in the market consensus about the future. What would happen to the yield on US Treasury securities maturing in 2 years (increase/decrease/stay the same)? What would happen to the yield on US Treasury securities maturing in 10 years (increase/decrease/stay the same)? What would happen to the yield spread between 2 year and 10 year Treasuries (increase/decrease/stay the same)? Explain your reasoning.

Reference no: EM131979454

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