Treasury yields extend slide on US stock market drop

By FXStreet FXStreet (Mumbai) – US Treasuries prices rose in the US session, pushing yields to fresh daily lows as a sell-off in the stock and commodity markets triggered a drop in the US stock markets.

Treasury yields had spiked on Monday after several top Federal Reserve officials suggesting a rate increase by year-end is on the table.

However, the risk aversion in the markets today increased the haven demand for the treasuries. The yield in the benchmark 10-yr treasury note now trades almost 7 basis points lower at 2.144%. The 30-year yield also declined more than 8 basis points to 2.952%. The two-year has managed to stay relatively resilient at 0.682%; down 3.2 basis points on the day.

The sell-off in the equities was mainly triggered by a 2% drop in crude prices and a 3% drop in copper prices to two-week lows.
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Source:: FX Street