Treasury yields fall as market opens after U.S. holiday

This post was originally published on this site
© Reuters. Treasury yields fall as market opens after U.S. holiday© Reuters. Treasury yields fall as market opens after U.S. holiday

(Reuters) – Treasuries rallied on Tuesday as the market reopened after Monday’s U.S. public holiday and investors sought out safer assets to shelter from the general atmosphere of uncertainty over Sino-U.S. trade talks and Brexit.

The ten-year yield was down 8 bps at 1.675% () by 1045 GMT, after rising on Friday to a two-week high on the back of signs Beijing and Washington might reach a trade deal and newfound optimism over a Brexit agreement between Britain and the European Union.

Bond markets rallied on Monday however as caution crept in on both fronts and yields are broadly lower across the board on Tuesday.

Two-year Treasury yields too fell 7 bps to 1.543% ().

U.S. Federal Reserve official James Bullard, who last month voted for a big half-point rate cut, said meanwhile in London he hoped the Fed’s two recent rate cuts would have staved off a lengthy inversion of the 2-10-year bond yield curve, that has preluded U.S. recessions in the past.

The yield curve has since disinverted.

He said the cuts could be reversed if the economic outlook improved.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.