Treasurys are rallying on Tuesday morning, causing longer dated yields to press to their lowest levels since the days following Donald Trump’s election win.
The complex held early gains and climbed to its best levels of the day after a Bloomberg report, citing people familiar with the matter, suggested China was ready to buy more Treasurys since its currency had stabilised.
Here’s a look at the scoreboard as of 7:53 a.m. ET.
- 2-year -1.6 bps @ 1.286%
- 3-year -2.7 bps @ 1.415%
- 5-year -3.8 bps @ 1.704%
- 7-year -4.1 bps @ 1.954%
- 10-year -4 bps @ 2.142%
- 30-year -3.5 bps @ 2.802%
Yields rallied sharply in the weeks following the election amid speculation Donald Trump’s platform would bring inflation back to the United States. The benchmark 10-year yield touched a high of 2.64% in the middle of March, but has been in a steady decline ever since as Trump’s policies have failed to make their way through Congress.
Tuesday’s buying pushed the benchmark 10-year yield to a low of 2.13%, a level last seen since November 10, two days after the election. The 30-year yield fell to its own six-month low of 2.79%.
The yield curve is seeing little impact from Tuesday’s action with the 2-10-year spread stuck near 85 basis points. It hasn’t been this flat since the beginning of October.
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