Long duration treasury yields drop in the US

FXStreet (Mumbai) – The long duration treasury yields in the US dropped along with the losses in the European stocks and US index futures.

The yield on the benchmark 10-year treasury note in the US fell 3.4 basis points to2.188%, while the 30-year dropped 4 basis points to 2.946%.

Equities and Oil push yields lower

The pan-European Euro Stoxx 600 index fell 0.87%, dragging the US index futures lower along with it. Meanwhile, crude prices suffered 2% losses as the bearish price forecast from Goldman Sachs outweighed upbeat IEA’s upward revision of the global oil demand forecast to 5-year high.

Drop in stocks triggered safe haven demand for the treasuries, pushing the yields lower. Meanwhile, part of the losses in long duration yields also represent falling inflation expectations due to drop in crude/energy prices.

The long duration treasury yields in the US dropped along with the losses in the European stocks and US index futures.

(Market News Provided by FXstreet)