Long-term Treasuries rise as investors dump stocks

Markets 8/10/2018, 12:35 PM
Long-term Treasuries rise as investors dump stocks

The dollar held most of its gains versus most of the major peers on Friday on safe haven demand and investors fled to the bond market, pressing yields lower. Stocks in Europe slumped after an unconfirmed report that the European Central Bank is concerned about major lenders' exposure to the overheating Turkish economy.

At the same time, precious metals showed moderate losses despite their reputation as risk aversion assets, partly as an appreciation in the greenback makes them more expensive for holders of other currencies. Markets were also digesting the warning by Russia's Prime Minister Dmitry Medvedev that it would be "a declaration of economic war" if the United States introduces sanctions on its banks.

The two-year note issued by the Department of the Treasury yielded 2.641% or 0.8 basis points less for the day at 12:25 pm CET. Yields were 2.9 points lower, at 2.899%, for the benchmark sovereign 10-year securities. The measure of bonds maturing in 30 years dropped 3.5 points to 3.05%. Prices of equivalent futures contracts rose 0.03%, 0.2% and 0.33%, respectively.

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F ZT+0.01%

105.6094
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F ZN+0.09%

120.7813
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F ZB+0.09%

144.1563
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