10-year Treasury yield hovers above 1.7% amid trade, global growth worries Express News
U.S. government debt prices were higher Friday morning, amid fresh concerns about an economic slowdown and a protracted trade dispute between the world’s two largest economies.
At around 05:10 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7069%, while the yield on the 30-year Treasury bond was also higher at around 2.2342%.
Overnight, Bloomberg reported that the U.S. is holding off on giving permission to U.S. companies to use Huawei products, citing people familiar with the matter.
It comes after China decided to stop buying American crops and after the U.S. officially declared China a currency manipulator earlier this week.
The latest flare-up in U.S.-China trade tensions has triggered fresh interest for so-called “safe-haven” assets.
At times of market turbulence, investors tend to flee to assets expected to either retain or increase in value — such as gold, the Japanese yen and government bonds.
Earlier this week, the 10-year Treasury yield, which is used as a benchmark for mortgage and auto loan rates, fell to a fresh three-year low as investors continued to rush for safety.The 30-year Treasury bond rate also neared an all-time low on Wednesday.
On the data front, producer price index (PPI) figures for July will be released at 8:30 a.m. ET. Core PPI data for July, excluding food and energy, will be released at the same time.
No major Treasury auctions were expected on Friday.