Search This Blog

Translate

Search Tool




Aug 8, 2019

Bonds I Treasury Yield Closing Report: Treasury yields pare steep August slide as trade fears pause


Thomas Franck


U.S. government debt rates climbed Thursday as a lull in U.S.-China trade turbulence and better-than-expected data helped stem the dramatic August fall in bond yields.

U.S. Markets Overview: Treasurys chart

TICKER COMPANY YIELD CHANGE %CHANGE
US 3-MOU.S. 3 Month Treasury2.0180.000.00
US 1-YRU.S. 1 Year Treasury1.7910.000.00
US 2-YRU.S. 2 Year Treasury1.6170.000.00
US 5-YRU.S. 5 Year Treasury1.5440.000.00
US 10-YRU.S. 10 Year Treasury1.7190.000.00
US 30-YRU.S. 30 Year Treasury2.2290.000.00
At around 3:51 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.72%, while the yield on the 30-year Treasury bond was also higher at 2.24%.
Yields’ move higher on Thursday came after the 10-year yield fell to a fresh three-year low and the 30-year bond rate neared an all-time low on Wednesday as investors continued to rush for safety amid an intensifying trade war between the world’s two largest economies.
The move came as central banks in New Zealand, India and Thailand surprised markets with aggressive easings. The Philippines central bank is expected to lower borrowing costs later in the session.
On Thursday, China reported trade data that was better-than-expected despite mounting economic pressure from elevated U.S. tariffs. It appeared to offer investors some respite from fears of a global currency war.
The Treasury Department auctioned nearly $19 billion in 30-year bonds at a high yield of 2.335%. The bid-to-cover ratio, an indicator of demand, was 2.24. Indirect bidders, which include major central banks, were awarded 61.3%. Direct bidders, which includes domestic money managers, bought 12.5%.
Stateside, Chicago Federal Reserve President Charles Evans suggested on Wednesday that he would be open to lowering interest rates in order to support inflation and counter risks to economic growth.
Market participants are seen building bets that the U.S. central bank will cut rates three more times by year-end, according to the CME FedWatch tool.
Policymakers at the Fed are next scheduled to discuss monetary policy settings in mid-September, with two more meetings to follow in October and December.

No comments:

Post a Comment