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Risk-Off Sentiment Strengthens Slide In Treasury Yields

Published Wed, 15 May 2019 09:24:35 -0400 on Seeking Alpha

Maybe it's a reaction to the recent escalation in the US-China trade conflict. Or perhaps the crowd is turning more cautious because of the runup in global equity markets earlier in 2019, before the trade row between Washington and Beijing undercut the bulls. Whatever the reason, yields on key Treasury maturities are trending down and the slide looks set to continue for the foreseeable future.
"We really need to get past trade negotiations, if we want to know what the next steps are for the Treasuries market," says Subadra Rajappa, head of US rates strategy at Société Générale. "At the moment, the [Treasury] market is still priced to perfection given the current state of trade discussions."
Bidding up Treasury prices (and thereby pushing yields down) is everyone's favorite trade when the economic or geopolitical outlook looks more uncertain than usual. By that standard, it's no surprise that the latest turmoil over trade between the planet's two largest economies has investors running for cover by hiding in the safe-haven of US government bonds.
A resolution to the trade issue would likely halt or even reverse Treasury yields. But, at the moment, there's no sign that the Trump administration is about to relent on its latest efforts to take a hard line on China's trade policies. In fact, it's no unreasonable to wonder if the situation could deteriorate further.
"An escalation scenario would be terrible all around," advises Gabriel Sterne, head of global macro... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VANGUARD EXTENDED DURATION TREASURY ETF 142.38   0.0 0.00 0.00 2.21
SPDR BARCLAYS CAPITAL 1-3 MONTH T-BILL ETF  

VANGUARD EXTENDED DURATION TREASURY ETF - EDV
VANGUARD EXTENDED DURATION TREASURY ETF - EDV  


Older articles featuring Vanguard Extended Duration Treasury Etf (EDV):
Pay Attention To The Message The Yield Curve Is Sending
Weighing The Week Ahead: Yield Curve Inversion And The Jackson Hole Agenda
Precious Metals Soar On Falling Yields, Global Currency Turmoil
Volatility Warrants Caution In U.S. High Yield
Negative Yielding Debt - The End Of The 'Old Paradigm'
Global Inflection Points: China, Oil, And Plunging Bond Yields
Evan Koenig On The Fed's Review Period, Monetary Regimes, And Yield Curves
Yield Curve Weirdness
How To Play The Big Trend Change In Bond Yields
June 2019 Yield Curve Update

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