Treasury Yields Falter at 2% Hurdle as Sell-Off Runs Out of Road
- HSBC’s Major predicts 10-year UST yields end 2019 at 1.5%
- Some investors turn neutral on duration given lack of clarity
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A 2% yield on benchmark Treasuries, which seemed imminent a week ago as the bond market was sliding, is suddenly looking far off.
The headwind to global growth from the the U.S.-China trade war persists, keeping investors happy to hide out in debt markets. The case for fresh downside in U.S. and European sovereign yields has also gained muster from disappointing data, including tepid U.S. inflation and weak growth in Asia’s biggest economies.