Yields Set to Slump With Traders Seeking Havens
- Futures rally in low volumes with Treasury cash market closed
- US 10-year yield set for about 15bp drop, European bonds soar
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Bond traders are expecting Treasury yields to slide when the cash market reopens from a US holiday.
The futures market, open for its usual hours on Monday, surged as concern around conflict in the Middle East fueled a flight to quality. The 10-year note contract was higher by around 30 ticks as of 2:30 p.m. in New York, indicating a decline in yields of approximately 15 basis points versus Friday’s 4.80% close. Exchange—traded funds tracking Treasuries also got a lift.