Treasuries advance as stocks reverse rally

Tuesday, 15. January 2019 13:43

Markets favored sovereign debt securities of the United States, Germany and Britain on Tuesday, which sent yields lower. The dollar rose modestly against most major currencies and gold pared gains in a shift toward assets investors perceive as safer, though the yen and the Swiss franc surrendered the increase from earlier in the day. Stocks in Europe turned lower as optimism about China's economic stimulus paled. JPMorgan Chase worsened sentiment by posting unexpectedly weak results for the previous quarter.

Of note, risk aversion can still strengthen as lawmakers in the United Kingdom are discussing the arrangement about the withdrawal from the European Union and preparing to vote. Stocks on Wall Street also hit session lows in premarket trade.

The US two-year note yield slipped slightly, to 2.533% at 7:38 am ET. The ten-year measure fell to 2.693% and the yield on the thirty-year bonds decreased the most, 1.7 basis points to 3.038%, which flattened the curve somewhat. Prices of corresponding futures gained 0.02%, 0.1% and 0.24%, respectively. In comparison, German and UK ten-year yields lost 2.2 points to 0.209% and 2.4 points to 1.17%, respectively.

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