Treasuries rally as stocks accelerate decline

Wednesday, 06. March 2019 18:07

Sovereign debt issued by the Department of the Treasury in Washington benefited in market trading on Wednesday together with the Japanese yen, another supposed safe haven in times of turbulence. Investors were discouraged about stocks, sending indexes on Wall Street deeper in the red. The jump in United States bonds sent yields to session lows as focus was on the upcoming Beige Book report by the Federal Reserve, expected to show sentiment in the business sector.

ADP's survey with private firms revealed a solid jump in employment in the US for last month – by 183,000. It came in against 300,000 for January, but the previous figure was revised from the initial 213,000. Statistics revealed the US trade deficit hit a decade high last year.

The yield on the two-year Treasury note tumbled 2.4 points at 12:03 pm ET to reach 2.52%. The ten-year benchmark fell 2.9 points to 2.69% after touching a one-week low at 2.684%, compared to the drop of 2.3 points to 3.061% for the 30-year maturities. Corresponding futures prices grew 0.05%, 0.24% and 0.39%, respectively, for the day.

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