10 Year Treasury Trades Under 2%

Treasury yields continued to plummet Monday morning, as the global bloodbath in stocks fueled demand for safe assets like government bonds.

The yield on the 10-year Treasury, -4.21%  fell below 2% for the first time in nearly four months. It dropped 7.4 basis points Monday morning at 1.976%, its lowest point since April 28. The move comes on top of last week’s tumble of 14.4 basis points — a sizable move for Treasurys and the largest weekly decline since March 20.

More broadly, the 10-year yield has plunged more than 53 basis points since June 10, when it reached its highest point this year at 2.478%.

Treasury yields fall when prices rise and vice versa.

Among other maturities, the yield on the two-year note, -11.15% lost 6.5 basis points on Monday to 0.564% to its lowest point since July 9. Last week, it dropped 10 basis points, the largest weekly decline since June 19.

The 30-year yield, -2.26%   slid 7.4 basis points to 2.670%, its lowest level since April 27. The yield has plunged 57 basis points since June.

via MarketWatch

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza