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  >  Markets

News : Markets

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

U.S. Government Bonds Strengthen on Trade Fears

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/11/2018 | 10:11pm CEST

By Akane Otani

U.S. Treasury prices rose Wednesday as fresh proposals for tariffs by the U.S. stoked fears that a global trade rift could be worsening.

The yield on the benchmark 10-year U.S. Treasury note settled at 2.844%, compared with 2.873% Tuesday.

Yields, which fall as bond prices rise, slipped overnight after the White House said it was looking at assessing 10% tariffs on an additional $200 billion in Chinese goods -- spurring Beijing to say it would retaliate with more tariffs of its own. The latest steps by the U.S. and China pressured global stocks while driving up demand for U.S. Treasurys, which tend to do well when investors feel shaky about the economic outlook.

The yield on the 10-year Treasury note then pared its fall after Labor Department data showed producer prices rising more than expected, suggesting inflation could be firming.

The producer-price index, which measures prices that businesses receive for their goods and services, rose a seasonally adjusted 0.3% in June from May -- more than the 0.2% that economists surveyed by The Wall Street Journal had expected. Wednesday's PPI data, coming a day before the scheduled release of June data on consumer prices, put pressure on Treasurys, whose fixed payments carry less purchasing power when inflation picks up.

With headline and core inflation expected to accelerate, "this week's data are also likely to put a floor under ten year Treasury yields around 2.85%," wrote Larry Hatheway, chief economist and head of investment solutions at GAM Investments.

The yield on the 10-year Treasury note had risen three of the past four trading sessions, driven higher by strong U.S. economic data.

Write to Akane Otani at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
07/18WALL STREET STOCK EXCHANGE : S&P 500 climbs to over five-month high on strong earnings
RE
07/18MARKET SNAPSHOT: Dow Logs Longest Win Streak In A Month; Nasdaq Narrowly Misses Fresh All-time High
DJ
07/18World stocks climb to month peak, U.S. dollar hits three-week high
RE
07/18World stocks climb to month peak, U.S. dollar hits three-week high
RE
07/18TSX falls 0.25 percent as energy weighs
RE
07/18WALL STREET STOCK EXCHANGE : Oil rises on bullish demand signals, even as U.S. stockpiles grow
RE
07/18LONDON STOCK EXCHANGE : Sterling slide boosts FTSE while results drive Smiths Group down
RE
07/18EUROPE MARKETS: European Stocks Close At Highest Level In More Than A Month
DJ
07/18LONDON MARKETS: FTSE 100 Logs Back-to-back Rise As Inflation Data Sow Doubt Over August Rate Hike
DJ
07/18WALL STREET STOCK EXCHANGE : S&P 500, Nasdaq Futures -- Technical Analysis
DJ
Latest news "Markets"
Advertisement