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29 Jun 2015
Treasury yields drop on Greece led risk aversion
FXStreet (Mumbai) - The yields on the long dated and short dated Treasury notes fell on Monday as increased possibility of Grexit triggered contagion risk across the Eurozone.
US 10-year yield fell by most since October 2011
The long-end of the treasury market curve, which are most sensitive to the safe haven demand, witnessed a sharp fall in the yields. The 10-year yield dropped to a low of 2.292% in the Asian session after Greek PM called for a referendum on creditor’s demand on July 5 and said he would activate the “no” vote. Greece’s current bailout program is set to expire on June 30.
The Greek issue has triggered a rise in volatility in the markets. The 10-year US yield had climbed to 2.49% on Friday, the highest since June 11. It increased 21 basis points last week.
Moreover, the long-end yields witnessed losses across Asian countries on Monday. Yields on 10-year Australian bonds fell 14 basis points to 2.92% and those on similar-maturity Japanese securities fell three basis points to 0.44%.
US 10-year yield fell by most since October 2011
The long-end of the treasury market curve, which are most sensitive to the safe haven demand, witnessed a sharp fall in the yields. The 10-year yield dropped to a low of 2.292% in the Asian session after Greek PM called for a referendum on creditor’s demand on July 5 and said he would activate the “no” vote. Greece’s current bailout program is set to expire on June 30.
The Greek issue has triggered a rise in volatility in the markets. The 10-year US yield had climbed to 2.49% on Friday, the highest since June 11. It increased 21 basis points last week.
Moreover, the long-end yields witnessed losses across Asian countries on Monday. Yields on 10-year Australian bonds fell 14 basis points to 2.92% and those on similar-maturity Japanese securities fell three basis points to 0.44%.