3/21/2017, 5:01 PM (Source: TeleTrader)
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Treasuries rally on equities sell-off

United States government bonds surged on Tuesday as uncertainty over President Donald Trump's economic policies and the outlook for interest rates in the country led investors away from equities.

Market participants became increasingly concerned that policy initiatives put forward by the president may take longer to pass than previously thought, causing a steep slide in the US financial sector and a flattening of the Treasury yield curve, as bond prices move in the opposite direction relative to yields.

The yield on benchmark 10-year Treasuries slipped 2.16 basis points to 2.4391% at 5:11 pm CET, having reached its lowest level since March 1 earlier in the session. The yield on two-year bonds was down 1.21 basis points to 1.2762%, while the yield on 30-year debt declined 2.35 basis points to 3.0535%.

In Europe, the yield on 10-year British gilts climbed 1.9 basis points to 1.253% on higher-than-expected inflation data, while the yield on 10-year German Bunds rose 1.5 basis points to 0.455% at the same time.

Baha Breaking News (BBN) / IB