26 Mar 2015
Treasury yields recover losses despite risk aversion
FXStreet (Mumbai) - The Treasury prices pared gains, helping the yields recover losses despite the risk aversion seen in the major US index futures and European equity markets.
Treasuries under perform other Safe haven assets
The risk aversion triggered by the fall in the US stocks on Wednesday led to the gains in the traditional safe haven assets like the Japanese Yen, Gold and the US Treasuries. However, the Treasuries have failed to sustain gains, pushing the yields higher ahead of the US session.
The 10-year yield in the US has recovered from the low of 1.89%, to trade at 1.927%, while the 30-year yield has recovered from 2.474% to trade at 2.507%. At the short-end, the 2-year yield, which mimics the short-term interest rate expectations, recovered from 0.59% to trade at 0.602%.
The Treasury yields could rise further in case the US equity markets recover losses witnessed in the previous session.
Treasuries under perform other Safe haven assets
The risk aversion triggered by the fall in the US stocks on Wednesday led to the gains in the traditional safe haven assets like the Japanese Yen, Gold and the US Treasuries. However, the Treasuries have failed to sustain gains, pushing the yields higher ahead of the US session.
The 10-year yield in the US has recovered from the low of 1.89%, to trade at 1.927%, while the 30-year yield has recovered from 2.474% to trade at 2.507%. At the short-end, the 2-year yield, which mimics the short-term interest rate expectations, recovered from 0.59% to trade at 0.602%.
The Treasury yields could rise further in case the US equity markets recover losses witnessed in the previous session.