Treasuries rally amid auctions, talks with EU

Wednesday, 23. October 2019 18:53

Investors favored safer bets on Wednesday as stocks on Wall Street rose only slightly and the prices rose for United States government debt securities. Of note, Secretary of Commerce Wilbur Ross expressed belief negotiations with the European Union and China could improve relations. Market participants were also eyeing cryptocurrencies as Facebook's chief executive Mark Zuckerberg was answering questions in the US Congress about the Libra project.

In other news, the index calculated by the Federal Housing Finance Agency rose by a mere 0.2% in August, falling behind estimates. The Department of the Treasury sold $20 billion in two-year floating-rate notes at a spread and discount rate of 0.3% compared to 0.22% and 0.29%, respectively, one month ago.

The two-year US note yield slumped 2.1 basis points at 12:48 ET to 1.575%. The ten-year rate dropped 1.5 points to 1.752% and the 30-year yield was 2.1 points lower at 2.236%. Corresponding futures were flat and up by 0.05% and 0.18%, respectively.

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