Treasuries Resurgent After Post-ECB Blip, Taking Yields Below 3%
- With ECB done, investors now looking ahead to Fed next week
- Rate on five-year notes plunged as much as 19 basis points
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US Treasury yields tumbled after weaker-than-expected economic data reversed early selling pressure in the wake of a half-point rate hike by the European Central Bank.
The five-year yield fell as much as 19 basis points to around 2.97% in New York trading, while the 10-year yield dropped as much as 16 basis points to 2.87%, sharply reversing an earlier spike. Australia bonds echoed the rally in Treasuries, with yields on the nation’s 10-year notes falling as much as 14 basis points to 3.43% on Friday.