8/7/2019, 4:28 PM (Source: TeleTrader)
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Treasuries gain more as Trump takes jab at China

Investors fled to safe havens on Wednesday with the selloff wave upon the opening bell on Wall Street. United States government debt prices benefited the most in the outburst of volatility together with gold and silver. Market rates on sovereign debt therefore continued to fall and the whole yield curve ended below the fed funds effective rate, currently at 2.13%. In the wake of the spillover of the trade war with China to foreign exchange policy, central banks of New Zealand, India and Thailand slashed interest rates today and surprised markets to the downside and US President Donald Trump said the Federal Reserve must cut borrowing costs "bigger and faster." Trump then claimed he "might have expected more" regarding market reaction and added: "We have to take on China."

The two-year Treasury yield plunged 6.1 basis points to 1.537% at 10:22 am ET after reaching a record low 1.497%. The ten-year rate sunk 8.4 points to 1.623%, off the earlier bottom just below 1.6%. The yield on the 30-year US bonds fell 9.2 points to 2.142%. The session low was 2.121% compared to an all-time low at 2.089% from July 2016. Corresponding futures rallied 0.08%, 0.42% and a whopping 1.02%, respectively.

The German 10-year benchmark today dipped below a negative 0.6% for the first time and reached 0.605%.

Breaking the News / IT