Treasury Rally Drags 2-Year Yield to Lowest Since February 2018
- Bets on Fed rate cut in 2019 gain momentum as stocks sink
- Trade tensions, weak Chinese data also a factor: BofA’s Cabana
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Treasuries rallied, pushing the yield on two-year notes to the lowest level in more than a year, as investors sought safety amid global economic and trade uncertainty.
The maturity’s yield dropped as low as 2.139% Wednesday, the lowest level since February 2018, while the benchmark 10-year Treasury yield fell to 2.36%, close to its 2019 low. The rally followed disappointing Chinese data and a report showing an unexpected drop in U.S. retail sales. It also came with stocks sinking against a backdrop of elevated trade tensions between the U.S. and China after the latest tit-for-tat round of levies.