Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Indexes  >  Xetra  >  DAX    DAX   DE0008469008

My previous session
Most popular
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
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 0.70% 57.61 Delayed Quote.-18.63%
DAX 0.85% 12430.88 Delayed Quote.-3.77%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on DAX
09/21EUROPE MARKETS: Europe Stocks Score Strongest Weekly Win Since March, Lifted ..
09/20EUROPE MARKETS: Europe Stocks Post 5th Straight Gain For Longest Win Streak S..
09/20EUROPE : European shares add to gains as trade war fears fade into background
09/19EUROPE MARKETS: Europe Stocks Book Fourth Win In A Row
09/18EUROPE MARKETS: Europe Ends Day Muted After Session Dented By Trade-war Headl..
09/17EUROPE MARKETS: H&M's 17% Stock Surge Is A Bright Spot For Europe's Stock Ind..
09/17EUROPE : European stocks keep steady amid tariffs fears; H&M surges
09/14EUROPE MARKETS: Europe Stocks Finish Week Stronger, But Danske Bank Comes Und..
09/13EUROPE MARKETS: European Stocks End Lower As Central Banks Grab Spotlight
09/13EUROPE : New trade talks revive European stocks, momentum slows
More news
News of the components of DAX
01:17pBAYER : Receives Positive CHMP Opinion for Its Hemophilia a Treatment BAY94-9027
01:17pBAYER : Jivi Approved in Japan for Hemophilia a
10:39aBASF : introduces poles for telcos and power producers
10:29aBASF : launches Infinergy production in Changhua
08:47aDAIMLER : Thomas Built Buses layoffs
09/21DAIMLER : Correction to Taxify Story on Sunday
09/21VOLKSWAGEN : O'Steen Volkswagen's Bill Olive reflects on Beetle's 70-year run in..
More news
Chart DAX
Duration : Period :
DAX Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DAX
Short TermMid-TermLong Term
Top / Flop DAX
E.ON 8.992 Delayed Quote.3.64%
SAP 104.1 Delayed Quote.2.42%
BASF 81.63 Delayed Quote.1.63%
DEUTSCHE BANK 10.536 Delayed Quote.1.60%
RWE 21.34 Delayed Quote.-0.56%
VONOVIA 41.77 Delayed Quote.-1.04%
COVESTRO 72.42 Delayed Quote.-1.12%
FRESENIUS MEDICAL CARE 86.92 Delayed Quote.-1.20%
INFINEON TECHNOLOGIES 20.1 Delayed Quote.-1.37%
Heatmap :