Business

U.S. yields tumble on trade worries, political tension

NEW YORK (Reuters) – U.S. Treasury yields fell on Monday, in line with the weak stock market, as trade worries and global political tensions in places such as Hong Kong and Argentina supported safe-haven assets.

FILE PHOTO: Flags of U.S. and China are displayed at American International Chamber of Commerce (AICC)’s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. REUTERS/Jason Lee

U.S. 30-year bond yields slid to their lowest since July 2016. U.S. long-term yields have fallen in six of the past nine sessions, reflecting investors’ diminished risk appetite.

European bond yields were also lower on the day.

The U.S. yield curve has also flattened significantly, suggesting mounting anxiety. The yield spread between U.S. 2-year and 10-year notes, a closely watched metric, narrowed to 5.3 basis points, the smallest difference since at least 2010, according to Refinitiv data.

The bond rally was triggered by protests in Hong Kong over the weekend, which originally stemmed from opposition to a bill allowing extradition to the mainland. That crippled Hong Kong’s airport, while in Argentina the defeat of President Mauricio Macri during primary elections added to global stress.

“The Hong Kong demonstrations and their ability to shut down the airport and the surprise in Argentina took the wind out of the sails of the stock market,” said Jim Vogel, interest rates strategist at FTN Financial in Memphis, Tennessee.

“We’re back to worrying that things are still unsettled and so there’s no need to push stocks higher, and without that optimism, without that ‘things-are-getting-better’ impulse behind stocks, Treasury yields are moving to the lower middle of the range,” he added.

Italy also had political problems after the League party last week filed a no-confidence motion against its own governing coalition. The party’s populist chief Matteo Salvini hopes that the motion move will trigger early elections and have him installed as the new leader.

Concern about the U.S.-China trade conflict persisted. A week ago, China allowed the yuan CNY=CFXS to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market turmoil.

Analysts also said Monday’s bond rally was exaggerated by a slew of holidays in Asia, particularly Japan, Singapore and India.

In afternoon trading, U.S. benchmark 10-year note yields fell to 1.64% US10YT=RR, from 1.734% late on Friday.

Since the beginning of the year, 10-year yields have fallen more than a hundred basis points, on track for its steepest drop in eight years.

Yields on 30-year bonds slid to 2.13% US30YT=RR, from 2.247% on Friday. Earlier, they fell to a more than three-year low of 2.119%.

At the short end of the curve, two-year yields slipped to 1.581%, from Friday’s 1.63% US2YT=RR.

“As long as there is global political tension, we’re going to get downward pressure on U.S. yields,” Stan Shipley, fixed income strategist, at Evercore ISI in New York, said.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Will Dunham and Richard Chang


Source link

health news headlines provided courtesy of Medical News Today.

Advertisement

Advertisement Small

Follow Me

Collaboratively harness market-driven processes whereas resource-leveling internal or "organic" sources. Competently formulate.

View More Job Search Results

Calendar

October 2019
M T W T F S S
« Sep    
 123456
78910111213
14151617181920
21222324252627
28293031  

Pages

Recent Comments

    RSS Meks Blog

    • How to add Instagram photo feed to your WordPress site (in 5 minutes!) October 1, 2019
      How (and why) to add Instagram to WordPress and see more benefits from that match? We give you all the details and tools to do it successfully yourself! The post How to add Instagram photo feed to your WordPress site (in 5 minutes!) appeared first on Meks.
      Ivana Cirkovic
    • 13 best headline & blog title generator tools to easily boost your SEO September 12, 2019
      Ready to increase traffic to your website today? Use these headline generator tools and improve your click-through-rates! The post 13 best headline & blog title generator tools to easily boost your SEO appeared first on Meks.
      Ivana Cirkovic
    • How to create a Facebook Page for your blog (plus PRO tips) September 4, 2019
      Wondering how to create a Facebook Page for your blog knowing that you really do need one? Follow our in depth guide and learn how to create and manage attractive and successful Facebook Page! The post How to create a Facebook Page for your blog (plus PRO tips) appeared first on Meks.
      Ivana Cirkovic
    • Beginners guide on how to redirect a page in WordPress August 29, 2019
      Whether you’re trying to redirect a page in WordPress or just want to discover and understand why it’s important, use this guide to help you get ahead of it and learn all there is to it. The post Beginners guide on how to redirect a page in WordPress appeared first on Meks.
      Ivana Cirkovic
    • The best Facebook Groups for SEO to improve your knowledge and rankings August 21, 2019
      Are you tired of searching for the best Facebook groups for SEO to improve your knowledge and learn about the tricks from the trade? The post The best Facebook Groups for SEO to improve your knowledge and rankings appeared first on Meks.
      Ivana Cirkovic
    • Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO August 15, 2019
      Are you looking for a reliable rank tracking plugin to track your rankings on search engines and improve SEO strategy? Here is our top recommendation! The post Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO appeared first on Meks.
      Ivana Cirkovic
    • 6 reasons why you should never use WordPress nulled themes August 7, 2019
      What are WordPress nulled themes and should you use them, are they really that bad as people say or it’s just to scare you away from using the good stuff for free? In this article, we’re explaining in details why you should never ever use these kinds of themes. The post 6 reasons why you […]
      Ivana Cirkovic
    • Top 6 WordPress Portfolio plugins (hand-picked by designers) July 31, 2019
      Wondering what type of WordPress Portfolio plugins to use to showcase your work? Read our recommendation and choose between these top eight I present to you today. The post Top 6 WordPress Portfolio plugins (hand-picked by designers) appeared first on Meks.
      Ivana Cirkovic
    • Definitive guide to adding Facebook Pixel in WordPress July 24, 2019
      Having problems setting up Facebook Pixel in WordPress? If you want to improve your Facebook ads conversion, use this guide and learn how to properly ad Facebook Pixel in any WordPress site or blog. The post Definitive guide to adding Facebook Pixel in WordPress appeared first on Meks.
      Ivana Cirkovic
    • How to easily create WordPress dropdown menu (without coding) July 17, 2019
      Interested to create WordPress dropdown menu all by yourself and don’t know how? Just follow our guide and learn in no time! The post How to easily create WordPress dropdown menu (without coding) appeared first on Meks.
      Ivana Cirkovic

    Text

    Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.

    Archives