Yields on US Treasuries slipped at the start of trading on Tuesday, retreating from their overnight highs as bonds followed a decline in stocks.
What do treasures do?
The 10-year treasury bill earns TMUBMUSD10Y,
was down 1.6 basis points to 1.590%, after hitting 1.625%, while the rate on the 2-year TMUBMUSD02Y notes,
was stable at 0.164%. The 30-year bond yield TMUBMUSD30Y,
slipped 1.7 basis points to 2.270%.
What motivates treasures?
Weakness in US stocks at the start of Tuesday fueled auctions on safe-haven assets such as government bonds. It was unclear what triggered the sudden drop in risk sentiment, but investors cited geopolitical tensions between China and its Asian neighbors around the South China Sea as part of the market nervousness.
The Stoxx Europe 600 SXXP,
was down 0.8%, while S&P 500 ES00,
and Dow YM00,
stock futures indicated a decline in stocks at the opening bell.
In economic data, the United States’ international trade deficit widened 5.6% to a record $ 74.4 billion in March, reflecting the impact of stimulus payments. While larger trade gaps may weigh on economic growth, they also reflect the recovery of the US economy and free-spending consumers.
In other US data, factory orders for March are due 10 a.m.ET.
What did market players say?
“Overall, this reopening has been extremely uneven overall. And we continue to see the Fed looking for crutches to stay on the side of cohabitation, ”said Gregory Faranello, head of US rates at AmeriVet Securities.
“In general, we see this sideways price action since the aggressive price review in the first quarter of 2021 as a period of natural consolidation after the speed and speed at which we revised prices in February,” said Faranello.