Business & Investment

Treasury yield drops to 1% for 10 years as stocks plummet

Treasury yields fell on Wednesday as global equities were under pressure over concerns over the deployment of the coronavirus vaccine and excessive bubbling in some corners of the financial markets.

What is the Treasury doing?

10-year government bond yield
TMUBMUSD10Y,
1.023%

It fell 2.5 basis points to a three-week low of 1.014%, temporarily touching the major 1% level. 2 year note rate
TMUBMUSD02Y,
0.117%

It fell 0.4 basis points to 0.119%. 30-year bond yield
TMUBMUSD30Y,
1.787%

2.1 Basis points decreased to 1.780%.

What drives government bonds?

The assets of the shelter U.S. stocks plummeted At the start of trading on Wednesday. Analysts believe that some of the weaknesses in risk assets are due to delays in vaccine deployment in Europe and the United States.

Investors were also worried that the signs of market bubbles suggest that stocks need to be fixed, against the backdrop of short pressures on some popular stocks like GameStop.
GME,
+ 126.27%
..

S & P 500
SPX,
-2.86%

And NASDAQ
COMP,
-2.88%

The Dow Jones Industrial Average fell by more than 2%
DJIA,
-2.26%

I lost more than 600 points.

Federal Reserve System Interest rates and bond purchase pace remain unchanged On Wednesday, he said the recovery strength was eased due to the COVID-19 pandemic.

Federal Reserve Chairman Jerome Powell said the Federal Reserve is patient with inflation and this year’s price increases will prove to be “temporary.”

European Central Bank Councilor Klaas Knot Said On Wednesday, the ECB could cut interest rates even if it needed to offset the appreciation of the euro, which could counter some of the central bank’s easing policies.

10-year German government bond yield
TMBMKDE-10Y,
-0.543%

It fell 1.5 basis points to minus 0.577%.

In US economic data, Durable goods rose 0.2%Below the 0.8% forecast from analysts polled by MarketWatch, primarily due to weak aircraft orders.

What did the market participants say?

“Part of [Treasurys] The rally is due to normal volatility. However, expectations for fiscal stimulus are also changing. More restrictions have been imposed in Europe and California, especially when it comes to viruses, and only some restrictions are beginning to be lifted, “said Tony Rodriguez, co-head of the fixed income division at Nuveen.

Treasury yield drops to 1% for 10 years as stocks plummet

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D231BA4F3558%7D&siteid=rss&rss=1 Treasury yield drops to 1% for 10 years as stocks plummet

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