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

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic 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 CEST

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"
03:12aChina says trade war to 'certainly' hurt U.S. exporters, create opportunities to others
RE
03:10aFrench industry morale fell in September to lowest level since March 2017
RE
03:09aEUROPEAN PARLIAMENT : Latest news - Next TRAN meeting - Committee on Transport and Tourism
PU
03:04aMINISTRY OF FOREIGN AFFAIRS OF REPUBLIC OF TAJ : Participation of the Minister of Foreign Affairs of the Republic of Tajikistan at the Informal Meeting of Council of Ministers of the Economic Cooperation Organization
PU
03:04aMINISTRY OF FOREIGN AFFAIRS OF REPUBLIC OF TAJ : Establishment of diplomatic relations between the Republic of Tajikistan and the Republic of Senegal
PU
03:03aOil hits four-year high as OPEC, Russia resist output rise to offset Iran sanctions
RE
02:58aOil hits four-year high as OPEC, Russia resist output rise to offset Iran sanctions
RE
02:53aKuroda says he wants to hit price goal so BOJ can normalize policy
RE
02:53aBOJ's Kuroda highlights need to look at the downside of easy policy
RE
02:49aWHAT'S NEWS : World-Wide
DJ
Latest news "Economy & Forex"
Advertisement