Key US Treasury Yields Lowest Since December 2017

Key US Treasury Yields Lowest Since December 2017

$DIA, $QQQ, $SPY, RUTX, $VXX

FLASH: The Benchmark 10-year Treasury yields fell to their lowest levels since December 2017 Monday as investors evaluated last week’s Dovish pivot by the Fed.

Last Wednesday the FOMC stunned investors by abandoning projections for any interest rate hikes this year and saying it would halt the steady decline of its balance sheet in September.

The yield curve inverted Friday after disappointing manufacturing data in the United States and Germany further raised concerns about the slowing global economy.

Monday’s action it is a follow through trade from last week.

Yield Check

  • 2-yr: -7 bps to 2.25%
  • 3-yr: -6 bps to 2.19%
  • 5-yr: -5 bps to 2.20%
  • 10-yr: -4 bps to 2.42%
  • 30-yr: -2 bps to 2.87%

Weaker equity markets and concerns about weakening international growth supported the trade. This is a disproportionately large rally given what we are seeing going on in risk assets.

Monday, the major US stock market indexes finished at: DJIA +14.51 at 25516.83, NAS Comp -5.13 at 7637.53, S&P 500 -2.35 at 2798.36

Volume: trade on the NYSE came in at 816-M/shares exchanged

  • NAS Comp +15.1% YTD
  • Russell 2000 +12.2% YTD
  • S&P 500 +11.6% YTD
  • DJIA +9.4% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bullish bias.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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