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  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

BOND REPORT : Treasurys Follow Selloff In European Bonds After Strong Data

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/10/2017 | 06:44pm CET

By Sunny Oh

10-year Treasury yield edges toward 2.40%

Treasury prices fell on Friday, pulling yields higher, with traders taking a cue from a selloff in European government paper after data showed the eurozone's economic recovery continues apace.

What are Treasury yields doing?

The action in the bond market was concentrated at the long-end of the curve. The 10-year Treasury note yield traded at 2.390%, up from 2.333% late Thursday. While, the 30-year bond yield climbed to 2.873%, from 2.808%.

The 2-year note yield rose to 1.654% versus 1.633%. Bond prices move in the opposite direction of yields.

What's driving the market?

Strong economic data out of the eurozone underlined the currency bloc's continued recovery. That could mean the European Central Bank would be more aggressive in winding down its monetary stimulus program, which is due to be scaled back beginning in 2018.

Investors are also watching the progress of legislation to overhaul the U.S. tax code amid differences between the bills proposed by the House Republicans and their Senate counterparts .

What do market participants say?

"The curve flattening move that took place over the last 8 days is being unwound in massive way. Many fear of more downside in prices as Euro-Govies are on uneasy footing as [are] U.S. Treasurys at the moment," said Tom di Galoma, managing director of Treasurys trading at Seaport Global Securities, referring to the selloff seen in European sovereign bonds.

The yield curve, which traces yields across Treasury maturities, has flattened in the past two weeks on concerns that the Federal Reserve would raise rates against a backdrop of tepid inflation. A flattening move describes when the gap between short-dated yields and long-dated yields narrows.

"If the global growth story is firming, that would allay not so much the deflation concerns, but the lowflation concerns," said Marvin Loh, senior fixed-income strategist at BNY Mellon.

What else is on investors' radar?

The University of Michigan's consumer sentiment index fell to 97.8 , below the 100.7 forecast by economists polled by MarketWatch.

What other assets are on the move?

European sovereign debt yields headed higher after a solid raft of economic data. French industrial production rose 0.6% in September, slightly higher than the 0.5% consensus estimate.

The yield for the 10-year German government bond, or bund, rose 4 basis points to 0.368%, while the 10-year French government bond yield climbed 6.1 basis point to 0.754%

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:10a ANTITRUST : Commission fines five car safety equipment suppliers € 34 million in cartel settlement
06:05a EUROPEAN COMMISSION DIRECTORATE GENERAL FOR AGRI : New rules extend marketing standards for free range eggs hit by avian flu restrictions
06:00a SP CONFEDERATION OF INDUSTRY OF CZECH REPUBL : Energy savings by 2030
05:55a MACAU SPECIAL ADMINISTRATIVE REGION GOVERNMENT : Consumer Council released latest ‘Supermarket price survey’ in Taipa and Coloane area
05:45a MINISTRY OF FINANCE OF RUSSIAN FEDERATION : Auction results of OFZ № 26207RMFS placement on 22 November, 2017
05:45a FSC FINANCIAL SERVICES COMMISSION : 22 Nov 2017 FSC issues Public Notice - Revocation of CIS Manager Licence of Cardinal Capital Partners
05:45aDJFed Minutes to Give Hints on Officials' Mood Ahead of Final Meeting of 2017
05:41a UK service sector's profitability drops to lowest since 2013
05:40a UK DEPARTMENT FOR CULTURE MEDIA AND SPORT : Military Aviation Authorities (MAA) certification of the P-8A Poseidon Maritime Patrol aircraft
05:35a SOUTH AFRICA GOVERNMENT : President Jacob Zuma no longer traveling to Zimbabwe
Latest news "Economy & Forex"
Advertisement