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Treasury yields drop on flight to safety and oil slide

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The US treasury yields dropped as a fall in oil prices below $30/barrel triggered risk aversion and flight to safety.

    The benchmark 10-yr treasury yield currently trades four basis points lower at 2.057%. The 2-yr treasury yield, which mimics short-term rate hike bets, is down more than two basis points at 0.87%.

    Oil prices fell below $30 and are on track to end the week 10% lower. The drop in the oil prices not only triggers risk aversion and haven demand for treasuries but also weighs over the inflation expectations. That too pushes the treasury yields lower.
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