Treasury yields drop on flight to safety

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A weak China trade data, coupled with a sharp drop in crude prices to lowest since 2009 triggered a risk-off in the markets and led to a flight to safety.

    The US treasuries, one of the traditional safe haven assets, advanced today, pushing the yields lower. The benchmark 10-yr yield lost 1.7 basis points to trade around 2.208%. The policy sensitive 2-yr treasury yield fell almost one basis points to 0.927%.

    A sharp drop in the Chinese imports highlighted a weak consumption in the world’s second largest economy and led to a bout of risk aversion in the European equities. The S&P 500 futures in the US also dropped 1% indicating the risk aversion has hit the US shores.

    Meanwhile, WTI Crude prices fell below USD 37.00/barrel levels for the first time since February 2009. Losses in oil hurt mining and energy shares across the globe and worsened the risk aversion.
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