Treasury yields are plunging as traders rush for safety amid renewed uncertainty surrounding geopolitical tensions in the Middle East and on the Korean peninsula. Aggressive buying has yields down as much as 7 basis points in the belly of the curve , and testing their recent lows.
Here’s a look at the scoreboard as of 11:06 a.m. ET:
2-year -4 bps @ 1.234% 3-year -5.5 bps @ 1.465% 5-year -6.6 bps @ 1.834% 7-year -6.8 bps @ 2.113% 10-year -6.5 bps @ 2.302% 30-year -5.7 bps @ 2.934%
The 10-year yield has flushed below the 2.30% level, and is flirting with its lowest close since the week following President Donald Trump’s Election Day victory. The benchmark yield reached a high of 2.64% in mid-March as traders speculated Trump’s agenda would bring back inflation to the United States.
However, the Republican plan to repeal and replace Obamacare never made it out of the House of Representatives, and that has caused traders to question Trump’s ability to forge ahead with other pieces of his agenda of rolling back regulations and cutting taxes.
Interestingly, Tuesday’s selling has swung the yield curve slightly steeper, with the 5-30-year spread wider at 110.5 bps. The curve put in its flattest point since August on March 14, the day the 10-year yield peaked.