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U.S. Treasury yields slid again Tuesday, erasing another chunk of last week’s climb, as retreating global equity markets spurred inflows into haven assets like government bonds.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.823% fell 6.7 basis points to 1.364%, while the 2-year note rate TMUBMUSD02Y, 0.216% edged 1.2 basis points lower to 0.218%. The 30-year bond yield TMUBMUSD30Y, 1.570% slipped 7.6 basis points to 1.582%.
What’s driving Treasurys?
Investors said it wasn’t clear what were the catalysts for the global stock-market selloff but suggested U.S. equities were due for some consolidation after seeing a breathless run-up since March. On Monday, the S&P 500 SPX, +1.20% recovered all of its year-to-date losses, but was poised to trade lower at the start of Tuesday’s session, bolstering prices for Treasurys.
In economic data, the U.S. Labor Department’s Job Openings and Labor Turnover Survey for April is due for release at 10 a.m. ET, along with April’s wholesale trade data, also due at the same time.
Bond traders will take down $29 billion of 10-year notes later in the afternoon, ahead of the Federal Reserve’s policy meeting.
The U.S. central bank’s rate-setting body, the Federal Open Market Committee, is expected to underline its willingness to support the recovery at its meeting Wednesday. Investors are also looking to see if the Fed will announce any new policy measures such as the use of forward guidance, that is, outlining the path for interest rates over an extended period.
What are Treasurys doing?
“Treasuries opened higher in Tokyo … and have continued to trade well throughout most of the overnight session with a reversal of the recent global ‘risk-on’ tone,” said Justin Lederer, Treasury markets analyst at Cantor Fitzgerald, in a note.
