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10/11, 6:25 PM (Source: TeleTrader)
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Treasuries sell off on stock surge, Fed's T-bill program

Hopes in at least a partial trade deal between the United States and China and, to a lesser extent, in a breakthrough in Brexit talks, brightened market sentiment on Friday, prompting strong jumps in the main stock indexes around the world. Safe haven assets suffered: sovereign debt securities issued by the Department of the Treasury in Washington dropped and yields surged. Losses in US bonds were maintained after the Federal Reserve revealed it is about to start buying T-bills for $60 billion per month.

Following the announcement, the three-month bill rate sunk to 1.661%, a level unseen since February of last year. It was 1.8 basis points down at 1.669% at 12:12 pm ET. Earlier today, the curve between the short-term securities and ten-year notes uninverted for the first time in more than two months.

The two-year US yield jumped 5.3 points to 1.593%. The ten-year benchmark was up 8.5 points at 1.757% and the 30-year gauge rose 5.3 points to 2.217%. Equivalent futures fell 0.13%, 0.51% and 0.93%, respectively.

Breaking the News / IT