The benchmark 10-year Treasury note yield has peaked for 2018 as trade worries, weaker emerging markets and a strong dollar cap the prior move upward in rates, according to Morgan Stanley.
“We started to take note of a changing dynamic for global government bond markets in late April and early May,” global head of interest-rate strategy Matthew Hornbach said in a note to clients Friday. “Not only do we think these factors will continue for a while longer, but we also think other factors will drive government bond yields lower.”
“That’s right, 3.12 percent was it,” he added, referring to the 2018 peak in the 10-year Treasury yield hit in mid-May. The 10-year yield fell sharply since then, last seen under 2.9 percent as a renewed wave of trade tensions gripped markets and threatened to stall global economic growth. Yields fall as prices rise.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.