OctaFX | OctaFX Forex Broker
Open trading account
Back

US Two-year treasury yield falls below August lows, Ten-year yield at 2.20 levels

FXStreet (Mumbai) - The two –year treasury yield in the US has slumped below the level last seen in August 2014, while the ten-year treasury yield has declined below the support level of 2.234, to trade at 2.20 levels.

The treasury yields extended their losses after the German Zew economic sentiment index fell by 10.5 points to minus 3.6 this month from September’s reading of 6.9. Meanwhile, industrial production in the euro zone declined 1.8% in August, confounding expectations for a 1.6% fall.

Both the German Zew data and the Eurozone Industrial production data have increased the concerns of a slowdown in the Eurozone economy. Consequently, the European equity markets are trading down by more than 0.80%, while the ten-year treasury prices have gained.

Moreover, the slump in the two-year treasury yield, a barometer for short-term interest rate expectations, indicates that bond markets in the US are pricing-in the delay in the interest rate hike owing to a slowdown in the global economy.

Gold remains steady

Gold prices have remained largely unchanged during the last couple of hours as the rebound in the US Dollar Index capped the gains arising from the fall in the European equity markets.
Read more Previous

Bitcoin rises to USD 400

Bitcoin prices have recovered entire losses witnessed during the first week of the current month, to trade at USD 400.
Read more Next
Start livechat