U.S. bonds Tuesday rate of global bond markets rose, but the United States this week intensive debt issuance, still investors are deeply concerned that at any Time may trigger touch global asset shocks.
U.S. 10-year bond yield fell to 1.52% intraday, the lowest level since last Thursday. This is the U.S. bond yield fell for the first time since five trading days. The U.S. Treasury issued bonds for three consecutive days this week, of which Tuesday’s offering conditions were good, European and American markets strengthened in response, with the UK and German benchmark bond yield declining.
The trigger for the latest bond decline was the poor outcome of the U.S. bond offering. Now, the tumbling market must digest this week’s $120 billion in new debt, and its appetite may have a broad impact on stock and currency markets.
U.S. 10-year bond yield retreat chart / fetched from Bloomberg
Richard McGuire, head of interest rate strategy at Rabobank, said: “As we move from the Epidemic to a recovery in sight, there are different factors affecting the market. If you look at European equities or U.S. equity futures, you would think we have an elevated appetite for risk. However, when you look at safe-haven assets, U.S. bonds are not also up across the board, as are German and U.K. bonds.”
On Tuesday, bonds extended their gains after a 3-year U.S. bond issue. On Wednesday, $38 billion of 10-year Treasuries will be issued, and on Thursday, $24 billion of 30-year bonds.
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