Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Indexes  >  Xetra  >  DAX    DAX   DE0008469008

Indicative prices Citigroup
DAX (DAX)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisHeatmapComponents 
News SummaryAll newsNews of the components ofTweets

BOND REPORT : Treasury Yields Fall As Trade Tensions And Italy Fears Stoke Demand For Havens

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/21/2018 | 09:54pm CEST

By Sunny Oh

Treasury prices rose, pushing yields lower, on Thursday after investors grappled with the potential threat of a euroskeptic policies in Italy and the impact of protectionism on a global economy already reeling from a strong dollar and higher interest rates in the U.S.

What's the market doing?

The 10-year Treasury note yield fell by 2.9 basis points to 2.899%. The 2-year note yield was down 2.1 basis points to 2.541%, while the 30-year bond yield slipped 2.1 basis points to 3.043%.

The 10-year Italian government bond yield was up 18.4 basis points to 2.745%, while the 10-year German bond yield was down 3.9 basis points to 0.335%.

Bond prices move in the opposite direction of yields.

What's driving Treasurys?

Trade tensions simmered in the background after Federal Reserve Chairman Jerome Powell and ECB President Mario Draghi said Wednesday a trade war would hurt the global economic outlook on a central banking panel in Sintra, Portugal. German car maker Daimler, in a profit warning, said that tariffs on Chinese imports would have a knock-on impact on their bottom line. The announcement sent European shares lower , with the German DAX 30 index(DAX) down by more than 0.8%.

The return of concerns over tensions between Beijing and Washington, drew investors to the safety of government paper. That has helped counter the strong data and building price pressures in the U.S. economy.

The new coalition government in Italy appointed euroskeptic Alberto Bagnai as the head of the Finance Committee in the upper house of the Senate and Claudio Borghi as the head of the budget committee in the lower house of parliament. Borghi has railed against austerity and balanced-budget policies, and has previously called for the issuance of short-term government bonds, or mini-bots, which some have read as the beginnings of a parallel currency, threatening the euro .

What are market participants saying?

"Given the twin pressures of strong growth and imminent price rises (tariffs will do that, for sure), the main thing anchoring yields is concern about the global economy. And if U.S. equities aren't worried about that, why should the Treasury market be? Presumably the next step is to take yields and the dollar up as much as it takes to cause as much volatility in financial markets (EM, credit) as it takes to impact the U.S. equity market," wrote Kit Juckes, chief fixed-income strategist for Société Générale.

"News that two euroskeptic lawmakers from the League have been named to head key economic committees in Italy is serving as a reminder that the political backdrop in Europe is becoming increasingly murky," said David Rosenberg, chief economist for Gluskin Sheff, in a note.

What data is on investors' radar?

The Philadelphia Fed manufacturing index slowed to 19.9 in June from 34.4 in May , a 19-month low. Initial jobless claims for the week of June 16 fell by 3,000 to 218,000, suggesting the labor market remains tight.

Stocks mentioned in the article
ChangeLast1st jan.
DAIMLER 1.36% 58.57 Delayed Quote.-17.71%
DAX 0.82% 12742.33 Delayed Quote.-1.17%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DAX
07/18EUROPE MARKETS: European Stocks Close At Highest Level In More Than A Month
DJ
07/17EUROPE MARKETS: European Stocks Log Best Close In About A Week
DJ
07/17LONDON STOCK EXCHANGE : TalkTalk, Royal Mail earnings spice up FTSE 100 trading
RE
07/16EUROPE MARKETS: European Stocks End Lower On China Growth Concerns, But Deuts..
DJ
07/16DEUTSCHE BANK : surprises market with earnings forecast upgrade
RE
07/16EUROPE : Industrials, earnings hopes help European shares shrug off China data
RE
07/15WALL STREET STOCK EXCHANGE : U.S. Stocks Resilient in Trade Spat, Sparking Compl..
DJ
07/15WALL STREET STOCK EXCHANGE : U.S. Stocks Enjoy Haven Status as Trade Spat Dings ..
DJ
07/13EUROPE MARKETS: European Stocks Book Small Gains As Focus Turns To Earnings
DJ
07/13Thyssenkrupp names finance chief Kerkhoff as interim CEO
RE
More news
News of the components of DAX
08:33aBASF : Invests $25 Million in Belgian 3D Printing Company
DJ
08:12aBASF : is expanding its cooperation with Materialise
PU
08:05aSAP : raises outlook as cloud growth 'unleashed'
RE
07:57aInnogy agrees with E.ON and RWE on planned transaction
RE
07:48aSAP : Raises Yearly Outlook On Cloud Business Optimism
DJ
06:08aECO-FRIENDLY PLASTICIZER MARKET 2018 : Global Industry Current Scenario and Busi..
AQ
12:30aCORRECTION OF A RELEASE FROM 18.07.2 : 13 CET/CEST - Correction of headline: E.O..
EQ
More news
Chart DAX
Duration : Period :
DAX Technical Analysis Chart | DAX | DE0008469008 | 4-Traders
Technical analysis trends DAX
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Top / Flop DAX
LUFTHANSA GROUP 21.35 Delayed Quote.4.20%
INFINEON TECHNOLOGIES 23.05 Delayed Quote.3.09%
COVESTRO 81.52 Delayed Quote.2.83%
VOLKSWAGEN 147.32 Delayed Quote.2.25%
ADIDAS 189.25 Delayed Quote.1.88%
BEIERSDORF 99.06 Delayed Quote.-0.24%
COMMERZBANK 8.533 Delayed Quote.-0.35%
FRESENIUS MEDICAL CARE 85.6 Delayed Quote.-0.37%
BAYER 92.96 Delayed Quote.-0.48%
LINDE 214.4 Delayed Quote.-1.29%
Heatmap :