United States: the 10-year bond yields below 2%

United States: the 10-year bond yields below 2%, unheard of

Forex News

The return on government debt of the United States rose to 10 Thursday to below 2% for the first time, al ...

The return on government debt of the United States rose to 10 Thursday to below 2% for the first time, as investors panicked rushed to the bond market, considered safer by market turmoil.

By 1430 GMT, the yield on the 10-year Treasury, which moves in the opposite direction of the market fell back to 2.031% against 2.165% Wednesday, after plunging to 1.978% by 1400 GMT.

According to Lindsey Piegza, an analyst at FTN Financial, the markets were reacting to "the new very dark, suggesting that the weakness (in U.S. growth) was not a short-term phenomenon."

"The weakness is likely to continue in the U.S., adding to the troubles in the euro area," added the analyst.

The U.S. bond market "remains a haven for international capital flows. Although the United States are in a position to question, they are certainly better than the European countries, that is why we see this movement of investors to the safety "offered by U.S. public debt, she said.

Market participants buy these securities in mass, which increases their value and is mechanically lowered their performance.

Financial markets, already taken by a renewed concern about global economic conditions, have been grounded by a round of troubling economic indicators in the United States.

The jobless claims rose last week, inflation accelerated, home resales have relapsed in July, the index measuring manufacturing activity in the Philadelphia area (Northeast U.S.) for the month of August collapsed.