The Treasury is giving way to tensions between the United States. US And China Threatens New Geopolitical Concerns
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EE Treasury returns. United States They fell on Friday as investors faced mounting tensions between Washington and Beijing in the midst of the COVID-19 pandemic, attracting appetite for safe havens.
The American bond market United States It will be closed next Monday to celebrate the Memorial Day holiday.
Watch: Is the stock market closed today? Here’s everything investors need to know about Memorial Day hours and closings
What do treasures do?
The yield on 10-year treasury bills
TMUBMUSD10Y,
it fell 1.8 basis points to 0.659%, reducing its weekly decline to 1.9 basis points, while the 2-year rate
TMUBMUSD02Y,
it remained virtually unchanged at 0.168%, leaving it at 1.9 basis points during the week.
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Bond yields at 30 years.
TMUBMUSD30Y,
It fell 2.6 basis points to 1,373%, reducing its weekly increase to 5.3 basis points. Bond prices move in the opposite direction to yields.
What motivates Treasurys?
Bonds rebounded and global stock markets came under pressure as geopolitical risks emerged.
Given the uncertainty created by the coronavirus pandemic, China has lowered its GDP target for the first time since adopting the practice in 1994, but officials have suggested that the government be preparing to impose legislation on national security in Hong Kong in response to that of last year. protests in favor of democracy.
Watch: “Worst Nightmare Happens Before Our Eyes,” Says Democratic Lawmaker After Beijing Mobilized to Pass Security Laws in Hong Kong
Hong Kong Hang Seng Index
HSI
it fell 5.6% in response, marking its largest loss in about five years. The S&P 500
SPX
and Dow
DJIA
They were limited before the holiday weekend.
The United States Congress He was moving forward with a bill that could prevent Chinese companies from listing on the US stock exchanges. United States The bill would require Chinese companies to establish that they are not owned or controlled by a foreign government.
Lily: US, China must find a way to work together even when tensions escalate, says former Treasury trade expert
What did market players say?
“We think calm markets are bull markets (that is, lower rates). We also view latent geopolitical risks as an argument biasing downside risks. Tensions between the United States and the China over Hong Kong is the latest source of concern, “said ING’s tariff strategists in a note.