US 10-year yields: Safe-haven bid diminishing - BBH

US 10-year yield rose for the second consecutive week, but this was only sufficient to push it back into the lower end of the old 2.80%-2.95% range as the safe-haven bid may have diminished in recent days, according to analysts at BBH. 

Key Quotes

“The media and policymakers seem ambivalent about foreign ownership of US Treasuries.  On the one hand, the fact that foreign participation appears light at the recent auctions is disconcerting for some.”

On the other hand, we are told that foreign officials buy US Treasuries so that their currencies do not have to appreciate and they can reap more of the benefits from trade. Others spin dark fantasies weaponizing large holdings of US Treasuries, such as China's, or in the past, Japan's which remain nearly as large.   At the same time, the deficit is growing and projected to be around 4% of GDP this year and 5% next year, suggesting strong US borrowing needs.”

The June 10-year note futures contract has been heavy for the past two weeks, and the poor close before the weekend suggests further losses are likely in the days ahead.  The contract closed below the 20-day moving average for the first time since March 21, and the five-day moving average is set to cross below the 20-day.  However, it is still drifting in a fairly narrow range of 120-121.  Bond market volatility (MOVE) is at three-month lows.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.


GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.


USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.


Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more