|Day's Range||2.87 - 2.89|
|52 Week Range||2.03 - 3.12|
Has a tit-for-tat tariff spat between China and the U.S. shifted from a skirmish to a full-blown trade war?
U.S. government bonds rallied early Tuesday as President Donald Trump threatened to impose tariffs on some $450 billion in Chinese goods, dialing up a trade conflict between the world’s largest superpowers and sending investors rushing to assets perceived as safe. The 10-year Treasury note yield (XTUP:TMUBMUSD10Y=X) fell 3.5 basis points to 2.891%, while the 30-year bond yield (XTUP:TMUBMUSD30Y=X) shed 3.1 basis points to 3.026%. The two-year note yield (XTUP:TMUBMUSD02Y=X) lost 2.1 basis points to 2.537%.
U.S. government debt prices jumped on Tuesday as concerns over a potential trade war between the U.S. and China intensified. The yield on the benchmark 10-year Treasury note fell to 2.877 percent from about 2.91 percent on Monday, while the yield on the 30-year Treasury bond was deep in the red at 3.011 percent. If China "refuses to change its practices" and insists on continuing with the new tariffs it recently declared, then the additional levies would be imposed on Beijing, Trump said Monday night.
U.S. government bond prices were little changed Monday as investors sized up political instability in Germany and the potential for rising trade tensions to drag on global economic growth. The yield on the benchmark 10-year Treasury note held steady at 2.926%, while the two-year note yield, which tends to move with expectations for Federal Reserve interest-rate policy, fell for a third consecutive session to 2.555% from 2.557%. Yields fell early in the session after German Chancellor Angela Merkel was handed a two-week ultimatum by her coalition partners, adding the country to the list of areas in the world with the potential to add instability to a turbulent geopolitical environment.
U.S. government bond yields struggled for direction Monday as stocks pared some of their losses from the open, sparked by escalating trade tensions between Washington and Beijing. President Donald Trump approved tariffs of 25% on about $50 billion of Chinese goods Friday, drawing retaliatory measures by China on U.S. goods of the same value. The modest bounceback helped to ease the flow of investors into haven assets such as U.S. government bonds.
Gold- and silver-backed ETFs move lowerAFP/What’s next for gold? Gold futures notched a modest gain on Monday, after a drop late last week that took the commodity to the lowest close of 2018, as trade tensions elevated global uncertainty, providing support for bullion prices. Global markets have focused on a growing trade spat between the U.S. and China.
Arturo Estrella, a former economist at the New York Federal Reserve, says the yield curve between the 10-year note and the 3-month T-bill is not flat enough to predict a recession next year. The economist co-authored several important research papers on the predictive powers of the yield curve. Call it "the unbearable flatness of yields" or "the trouble with the curve." However one cares to describe it, the slope of the Treasury yield curve has been the subject of much concern of late, as regards the future direction of the economy.
Foreign governments have pared back their holdings of U.S. debt, reducing the total by nearly $10 billion in March and April. Russia was notable among the group stepping back with a nearly 50 percent cut. The U.S. government needs buyers of its debt as the Fed continues to reduce its holdings and the budget deficit is projected to surge in coming years.
BEIJING (AP) — Asian stocks tumbled Tuesday after U.S. President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on additional Chinese goods.
Drops across European bourses accelerated in mid-afternoon action on Monday, with investors increasingly nervous over deepening trade disputes. Just after 1pm in London, the pan-European Stoxx 600 gauge ...
The Federal Reserve roiled markets after it announced its second interest rate hike of the year, even though the decision was widely expected. If the 10-year Treasury yield rises over 3 percent and marches toward 4 percent, a level it hasn't hit in a decade, investors may then begin to alter their outlooks for the economy and the market. After all, interest rates impact the economy from every angle, affecting spending by businesses and consumers and borrowing decisions, corporate buybacks, capital investment, earnings growth and more.
The yield on the benchmark 10-year Treasury note was lower at 2.913 percent as of 7:10 a.m. ET, while the yield on the 30-year Treasury bond slipped to 3.041 percent. On Friday, President Donald Trump announced that the U.S. would inflict tariffs that would impact up to $50 billion worth of Chinese goods.
U.S. government bond prices jumped Friday after a tariff fight between the U.S. and China intensified. Yields fell after the Trump administration said it would go ahead with a planned imposition of tariffs on $50 billion of imports from China. Officials in China said they would retaliate immediately, raising the potential for a trade war between the world’s two biggest economies.
Yield curve flattest since 2007Reignited fears of a trade war between the U.S. and China contributed to a move to the perceived safety of government paper. U.S. government bonds found support Friday, extending a yield decline for Treasurys as an escalating trade spat between the U.S. and China contributed to a move to the perceived safety of government paper. Short-dated yields, on the other hand, were elevated for the week after the Federal Reserve signaled its intentions to raise rates four times this year.
Speculators' net bearish bets on U.S. 10-year Treasury note futures fell earlier this week to a two-month low in advance of the Federal Reserve's widely expected decision to U.S. raise interest rates, ...
One thing we could possibly see today is a divergence in which the Dow Jones Industrial Average ($DJI) gets hit harder than the S&P 500 (SPX) and Nasdaq (COMP), in part because more of the big industrial stocks that could get hurt by China’s response to U.S. tariffs reside in the $DJI. In addition, investors could conceivably gravitate back toward small-cap stocks that many believe might suffer less of an impact from possible trade wars. It isn’t just the big industrial stocks that could feel heat from worsening trade relations with the Asian giant.
Trade with China appears to be back on the market’s menu today, and the post-meal fortune doesn’t look too positive for stocks. Going into Friday’s session, focus turned toward the U.S. decision to impose new 25% tariffs on $50 billion worth of Chinese products. Stocks fell in pre-market trading, following the path of most European and Asian markets.
U.S. government debt prices rose on the final trading day of the week, as investors weighed an announcement by the Trump administration to possibly implement a 25 percent tariff on up to $50 billion in Chinese imports. The yield on the benchmark 10-year Treasury note was lower at around 2.91 percent at 8:40 a.m. ET, while the yield on the 30-year Treasury bond slipped to 3.029 percent. In a statement Friday, President Donald Trump said the measures would affect Chinese goods "that contain industrially significant technologies," without specifying those products.
The U.S. government and American corporations don’t appear to be locking in low borrowing costs as the Federal Reserve dials up interest rates, a sign that financial markets aren’t anticipating rates drifting much higher from where they presently sit
U.S. stocks stabilized Thursday, suggesting investors are coming to terms with central banks’ plans to gradually leave behind a decade of unprecedented monetary stimulus. After the Federal Reserve signaled Wednesday that U.S. interest rates will likely go up four times in 2018—instead of three, as had been widely believed—the European Central Bank said Thursday it would end its bond-buying program in December. “The Fed and the ECB and other central banks have taken the market to places they’ve never been before, and now they want to gently nudge it back to somewhere closer to where it was in the past,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co.
Wall Street opened lower on Friday after US President Donald Trump’s move to slap fresh tariffs on Chinese products revived fears of a full-blown trade war. Trump on Friday launched new 25 per cent tariffs ...
Bond yields fell early Thursday after the ECB’s meeting. The yield on the 10-year Treasury note then pared declines, before drifting lower again after data showed retail sales rose more than expected in May and that the number of Americans filing new claims for unemployment benefits fell more than expected. Stephen Voss for The Wall Street Journal The U.S. Treasury Building in Washington. In comparison, the ECB’s decision not to raise interest rates until mid-2019 struck many analysts as dovish.
If recent data is any indication, the U.S. is on track to reap a sterling quarter of growth, but that hasn’t stopped the yield curve from flattening toward an inversion, a precursor to a recession. Bond investors appear skeptical that this bump in growth can persist as longer-dated yields continue to fall this week. An inversion of the curve, when short-dated yields edge above long-dated ones, has preceded every recession since World War II.
Treasury yields slipped Thursday after the European Central Bank issued a timetable for the end of its easy-money policies. This follows the Federal Reserve’s decision Wednesday to lift interest rates, as expected. The U.S. central bank also signaled that it would tighten monetary policy at a slightly faster clip than had previously been anticipated, with the domestic economy growing steadily.