Treasuries rise before US manufacturing data

Thursday, 18. April 2019 12:16

Markets showed cautious sentiment on Thursday, as evident from a rally in the most widely followed government bonds. Securities issued by the Department of the Treasury in Washington advanced, weakening yields in a spillover from across the Atlantic, as IHS Markit's preliminary monthly data indicated the euro area's manufacturing activity shrank for the third time in a row in April. In a slower session ahead of the Easter break, Wall Street was on the back foot before the bell, but stocks in Frankfurt and Paris rebounded after a weak start.

The flash private sector report for the United States is due to be released today. The index calculated from information gathered from purchasing managers landed last month at the lowest mark in expansion territory since June 2017, increasing fears of a recession. Also on the slate are weekly jobless claims, retail sales for March and business inventories for February.

The yield on two-year US notes fell by two basis points to 2.382% at 6:11 am ET. The 10-year rate, a benchmark for borrowing costs, slumped 3.4 points to 2.564%, compared to the 2.1-point drop in the 30-year bond yield to 2.974%. Corresponding futures prices were higher by 0.04%, 0.25% and 0.38%, respectively.

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