Treasuries turn green as Wall Street swings lower

Monday, 04. March 2019 18:45

The markets saw an abrupt shift in sentiment on Monday as investors were partly discouraged by a drop of 0.6% in construction spending in the United States, registered for December. Stocks sold off, giving a boost to debt securities issued by the Department of the Treasury, which means yields dropped. Gold was off the session low, looking to turn green, while the Swiss franc and the Japanese yen, two conventional safe haven assets, were also underpinned amid a wave of risk aversion.

Of note, Secretary of State Mike Pompeo contributed to the reversal, saying trade talks with China could still be terminated in the last moment.

The yield on the two-year US notes tumbled two basis points to 2.541% at 12:43 pm ET. The ten-year benchmark was down two and a half points at 2.729%, compared to the same decline, to 3.097%, for 30-year maturities. The corresponding futures prices advanced 0.03%, 0.18% and 0.37%, respectively.

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