US 10Y Fell Below 2% on Tuesday

The yield on the benchmark 10-year Treasury note fell below 2% on Tuesday as investors looked for safety following the release of much weaker-than-expected confidence data.

The yield traded at 1.98% as of 11:02 a.m. ET. The 2-year rate also slid to 1.71% while the 30-year bond yield declined to 2.52%.

The Conference Board’s consumer confidence index fell to 121.5 in June, reaching its lowest level since September 2017. Conference Board senior director Lynn Franco said escalating trade fears appear to have “shaken consumers’ confidence.”

“Those survey readings of higher consumer confidence were just a lot of hot air as it turns out,” said Chris Rupkey, chief financial economist at MUFG, in a note. “If the Fed had had this almost ten point drop in the confidence number last week it may well have tipped the scale and led them to cut interest rates.”

Federal Reserve Chairman Jerome Powell will speak at the Council on Foreign Relations. Powell’s remarks will come after the Fed said last week it will “act as appropriate” to maintain economic growth.

via CNBC

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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 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.
Alfonso Esparza