Treasuries decline on jump in equities

Monday, 11. March 2019 19:49

As Wall Street reached session highs on Monday at levels unseen since March 6, sovereign debt issued by the United States Department of the Treasury continued to trade lower. Risk appetite surged, which was evident also from the selloff of gold and silver. The administration of United States President Donald Trump proposed a $4.7 trillion budget for fiscal 2020, with the focus on military spending, border security and infrastructure.

The latest data on business inventories and retail sales indicated improvement in December and January, respectively. The Federal Reserve Bank of New York registered weakened inflation expectations. Sentiment was also upbeat on indications the United Kingdom's Prime Minister Theresa May could come to terms regarding Brexit both with lawmakers and the European Union. The Treasury today sold three-year notes at the weakest high yield in a year.

The two-year note slipped slightly, lifting the yield to 2.471% at 2:46 pm ET. The yield on the 10-year benchmark was up at 2.642%, compared to the rise of 1.5 basis points to 3.031% for 30-year US government bonds. Corresponding futures slipped 0.02%, 0.06% and 0.15%, respectively.

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