Treasury yields are plunging

Treasurys are rallying sharply as traders return to work following the holiday weekend. Early buying has yields down more than 8 basis points in the belly of the curve as traders pile in following President-elect Donald Trump’s comments on the strong dollar. Trump told the Wall Street Journal, “Our companies can’t compete with [Chinese companies] now because our currency is too strong. And it’s killing us.” Here’s a look at the scoreboard as of 9:26 a.m. ET:

  • 2-year -5.3 bps @ 1.140%
  • 3-year -7.2 bps @ 1.404%
  • 5-year -8.6 bps @ 1.811%
  • 7-year -8.5 bps @ 2.116%
  • 10-year -8.2 bps @ 2.314%
  • 30-year -7.3 bps @ 2.916%

Tuesday’s bid has down to their lowest levels since at least the beginning of December. Yields rallied sharply from election night until the middle of December amid expectations President-elect Donald Trump’s protectionist trade policies and plans for massive infrastructure spending would spark a return of inflation in the United States. The benchmark 10-year yield put in a high 2.64% the day after the Fed hiked its benchmark interest rate for just the second time since the financial crisis and said it expects three rate hikes in 2017.




Nuria Pujol