Treasury yields dribble lower in European morning trade

10-year Treasury yields fall over 5 bps to 1.641%


As much as a relief in the bond market may be good news for general market sentiment, the latest push lower in yields has that sense of a risk-off element to it.

The tone in the market is erring towards being more defensive and cautious as Turkey keeps emerging markets on edge, Europe bracing itself for a third virus wave with German extending lockdown until 18 April, and China risk appetite is looking rather shaky.
Adding to that is a stronger dollar as well, with the antipodeans sinking today. NZD/USD is hovering at three-month lows, down by 1.4% on the day after having seen key technical levels breached and looking poised for a potential push towards 0.7000 next.
As such, be wary that today may not necessarily see the lower yields, higher stocks correlation we have come to familiarise ourselves with in recent weeks.