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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 121.45   0.0 0.00 0.00 2.75
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):
Long Bond Butterfly Spread And Convexity To Gain On Yield Volatility And Negative Butterfly Twist
The U.S. Yield Curve Is Not A Broken Recession Indicator
Treasury Yields: Waiting On The Next Catalyst
Risk-Averse Funds Flowing Into U.S. Distorting Yields
Macro Musings Podcast: Alexandra Scaggs On Bond Markets, The Treasury Yield Curve, And MMT
Barbells And Bond Ladders: How To Invest When The Yield Curve Is Flat
The U.S. Yield Curve Has Still Not Inverted
Misreading The Signs: Is Yield-Curve Inversion A False Alarm?
The Inverted Yield Curve: Why It Will Not Lead To A Recession This Time
What Is The Yield Curve Telling Us?

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