Treasuries rise together with stocks on inflation dip

Thursday, 13. June 2019 14:53

Prices of United States government debt increased on Thursday parallel to gains registered on Wall Street before the opening bell. While Treasuries rose, translating to a decline in yields, precious metals were also mostly in the green, as both asset classes benefited from a shift to safety as market participants waited for clarification about incidents in the Sea of Oman. Adding to the shift was a weakening in inflation as measured by May import and export prices by official statistics in the United States.

The annual drop in the import price index accelerated to 1.5% from April's 0.2%. The export component fell 0.7% year on year, more than reversing the 0.3% gain from the previous month. The dollar was mostly flat.

The US two-year note yield was moderately lower at 1.864% as of 8:46 am ET. The ten-year benchmark dipped 1.5 basis points to 2.103% and the 30-year rate slipped one point to 2.608%. Corresponding futures advanced 0.03%, 0.11% and 0.2%, respectively. In comparison, the yields on German 10-year notes moved marginally down to a negative 0.241% and the British measure sunk 4.2 points to 0.829%.

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