Eurodollar Futures Market News and Commentary
Mar T-notes (ZNH20) on Tuesday closed up +7 ticks. The 10-year T-note yield fell -3.2 bp to 1.553%.
Mar T-note prices on Tuesday matched a 2-week high, and the 10-year T-note yield fell to a 2-week low of 1.536%, on global economic concerns. Also, a nearly -1.7% fall in Apple on Tuesday undercut U.S. stock indexes and boosted safe-haven demand for T-notes. Apple on Tuesday dropped when it said the fallout from the China coronavirus would cause it to miss its sales targets for this quarter.
T-note prices had continued support from expectations that the negative effects of the China coronavirus will force the Fed to cut interest rates by at least one notch by year-end. There are now 73,424 confirmed cases of the coronavirus and 1,873 deaths.
Lower global government bond yields were positive for T-note prices Tuesday. The 10-year German bund yield on Tuesday dropped to a 2-week low of -0.432%, and the 10-year Japan JGB bond yield fell to a 2-week of -0.061%.