US Yields Fall as Tensions Rise on US-China Trade

May 23, 2019 Share Print 0

The yield on the 10-year Treasury note fell Thursday to its lowest level since 2017 as Wall Street became more nervous that the U.S.-China trade war could drag on longer than expected.

At around 10 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.331%, its lowest level since Dec. 7, 2017. The yield on the 30-year Treasury bond was also lower at around 2.764%, its lowest level since January 2018.

Yields extended their declines after financial data firm IHS Markit said the U.S. manufacturing Purchasing Managers Index fell to 50.6 in May, the lowest reading since September 2009.

“Growth of business activity slowed sharply in May as trade war worries and increased uncertainty dealt a further blow to order book growth and business confidence,” said Chris Williamson, Markit’s chief business economist.

The latest fight between Washington and Beijing worsened after U.K.-based semiconductor designer Arm Holdings said it suspended business with Huawei to comply with the U.S. blacklisting of the telecom company. Panasonic, Vodafone and BT Group have also adjusted their businesses to comply with U.S. stipulations.

via CNBC

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.

Bio
Twitter
Google+
Latest Posts

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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.