Treasuries stay in green; yield curve near inversion

Monday, 26. August 2019 16:29

The renewal of risk appetite in the markets on Monday failed to impress bond investors. Prices of United States government debt advanced, sending yields down by as much as two points, mostly at the center of the curve. The borrowing cost equivalents in the key section, between the two-year and ten-year maturities, remained near after inverting several times in the past week. Still, they haven't yet closed with the two-year measure above the Treasury benchmark. A yield curve inversion is usually seen as a sign of instability and a possible recession.

United States President walked back on his recent escalation of the trade war with China, hinting at a potential easing of tariff measures. He claimed the other side asked for bilateral talks to continue and that he accepted, but the government in Beijing wouldn't confirm it.

The two-year yield was at 1.514% at 10:27 am ET compared to the ten-year rate at 1.519%. The yield on the 30-year bonds retreated slightly, to 2.022%, recovering above the psychological 2% mark. Corresponding futures were up by 0.04%, 0.17% and 0.17%, respectively.

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