Treasuries Rise With Gold, Stocks Fall on Geopolitical Tension
- China seizes U.S. drone in international waters in Asia
- European stocks drop from 11-month high, gold advances
Cochinos: Treasury Stance Towards Dollar Is Critical
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Treasuries rose and stocks erased modest gains after U.S. defense officials said a Chinese naval ship seized an unmanned drone in the South China Sea.The dollar’s advance stalled as the dust settled on a new financial-market landscape created by the Federal Reserve’s shift to a tighter policy path in 2017.
The yield on 10-year Treasuries fell as much as five basis points and gold futures advanced as investors sought safety assets. Crude jumped 2 percent toward $52 a barrel in New York, as a rise in maritime tensions could crimp deliveries. U.S. equities erased 0.4 percent from session highs, and the dollar retreated versus its major peers. Soybean futures erased losses on the news.