[U.S. Government Shutdown Spurs Safe-Haven Demand, Treasury Yields May Continue to Decline] U.S. Treasury yields continue to fall, with the 30-year Treasury yield dropping to a six-month low. As the U.S. government shutdown approaches the second longest in history, concerns in the credit market are intensifying, and trade tensions are escalating, prompting traders to turn to safe-haven assets. Data shows that the cost of options betting on a sharp drop in yields is rising rapidly, and market demand for U.S. Treasuries is driving the overall yield curve downward. Strategists recommend tactically going long on U.S. Treasuries to respond to the current market trend.
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