Treasuries rise as Dow retreats from record high

Wednesday, 17. July 2019 19:19

Yields on the national debt of the United States pulled back on Wednesday, walking back the previous session's jump as investors turned to safe haven bets amid fears of the impact of the trade war with China. Prices of sovereign notes and bonds like Treasuries, which move inversely to yields or interest rates, benefited from a small drop on Wall Street, where the Dow Jones Industrial Average was looking to stop a streak of five days with all-time intraday peaks. Oil swung to negative territory and risk aversion propped up precious metals.

The yield on the two-year US note dipped moderately to 1.846% at 1:17 pm ET. The 10-year rate was down 4.4 basis points at 2.061%. As core consumer price inflation grew to 2.1% last month, it would imply the benchmark has lately been visiting negative territory in real terms. The 30-year yield slumped 3.9 basis points to 2.575%. Corresponding futures values grew by 0.01%, 0.22% and 0.39%, respectively.

In comparison, the German 10-year Bund yield fell 4.2 points to 0.288% below zero today and the British equivalent dropped 6.1 points to 0.761%. The Dow index lost 0.18%.

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