Treasuries fall amid rate cut bets, trade optimism

Monday, 28. October 2019 19:43

Market participants dumped safe haven assets on Monday including debt securities issued by the Department of the Treasury in Washington, which means yields jumped. Underpinned by a claim by United States President Donald Trump that the first part of a desired comprehensive bilateral deal with China could be adopted sooner than expected, risk appetite surged and the S&P 500 stock index reached an historic intraday high.

Alphabet also climbed to record, before the scheduled release of quarterly results. The earnings season brought results that surpassed projections. Investors are mostly pricing in an interest rate cut for the Federal Reserve's two-day meeting which starts tomorrow. Focus was also on the initiative for a snap election in the United Kingdom as Brexit is being delayed. Gold and silver slumped.

The two-year US yield climbed 2.4 basis points at 2:40 pm ET to 1.659%. The ten-year rate advanced 5.4 points to 1.85% after hitting 1.862%, the highest level on a closing basis since September 13. The 30-year gauge was up 5.4 points at 2.343%. Corresponding futures rose by 0.05%, 0.3% and 0.71%, respectively.

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