8 Mar 2016
Treasury yields drop on China data and risk aversion
Long duration Treasury note prices rallied, pushing the yields lower after China data reignited fears of slowdown in world’s second largest economy and triggered a flight to safety.
At the time of writing, the yield on the benchmark 10-yr Treasury note was down more than 7 basis points at 1.827%. The 30-yr yield was down almost 8 basis points at 2.624%.
Long duration treasury notes are more sensitive to the risk-on/risk-off. Meanwhile, 2-yr Treasury note, which mimics short-term rate hike expectations, was down more than 3 basis points at 0.874%.
Moreover, the financial market instability acts as a roadblock in Fed’s plans to hike rates. Consequently, 2-yr Treasury note also took a hit.
China data released earlier today showed imports tanked 13.8% y/y in Feb. Exports tanked 25.4% y/y as well.
At the time of writing, the yield on the benchmark 10-yr Treasury note was down more than 7 basis points at 1.827%. The 30-yr yield was down almost 8 basis points at 2.624%.
Long duration treasury notes are more sensitive to the risk-on/risk-off. Meanwhile, 2-yr Treasury note, which mimics short-term rate hike expectations, was down more than 3 basis points at 0.874%.
Moreover, the financial market instability acts as a roadblock in Fed’s plans to hike rates. Consequently, 2-yr Treasury note also took a hit.
China data released earlier today showed imports tanked 13.8% y/y in Feb. Exports tanked 25.4% y/y as well.