Treasury prices were little changed Monday, erasing earlier losses as stocks moved deeper into the red amid investors' concern about how the government will support financial institutions.
Ten-year note yields (UST10Y) inched up 1 basis point to 2.79%, after earlier reaching 2.88%. A basis point is 0.01%.
Yields on two-year notes (UST2YR), which move inversely to prices, was little changed at 0.95%, after having briefly risen above the 1% mark for the first time since Feb. 10.
Bonds retraced losses as U.S equities surrendered early gains, indicating continued concerns about the banking sector after the government detailed plans to begin "stress tests" of financial institutions.
"There are a lot more questions than answers right now," said Mario De Rose, a fixed-income strategist at Edward Jones & Co.
Safe havens such as U.S. government debt typically draw money from investors not inclined to buy into riskier assets, like equities.
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