2-Year T-Note Futures Market News and Commentary
Mar T-notes (ZNH20) on Monday closed up +19.5 ticks. The 10-year T-note yield fell -8.1 bp to 1.603%.
Mar T-note prices rallied to a 3-1/2 month high Monday and the 10-year T-note yield tumbled to a 3-1/2 month low of 1.601%. U.S. T-note prices, and the global bond market in general, saw support from expectations for weaker global economic growth due to the spreading Chinese coronavirus and due to safe-haven demand with Monday's sharp sell-off in stocks. The latest data show 2,744 confirmed cases of the virus and at least 80 deaths. Mainland China accounts for 98% of confirmed global infections but the virus has spread to more than 12 other countries.
The 10-year German bund yield fell -5.0 bp Monday and posted a 1-3/4 month low of -0.390%. Bund yields fell on equity market weakness and on Monday's economic data that showed German Jan IFO business climate unexpectedly fell -0.4 to 95.9, weaker than expectations of +0.7 to 97.0. Bund yields also saw downward pressure fr... Read more