TREASURIES-Yields flat in spite of major stock sell-off

  • 10/28/2020
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New throughout) NEW YORK, Oct 28 (Reuters) - U.S. Treasury yields were roughly unchanged across maturities on Wednesday afternoon, as expectations of heavy issuance of new supply offset safe-haven demand amid a dramatic stock sell-off that brought major U.S. stock indexes to one-month lows. Risk assets on Wednesday fell as coronavirus infections surged across the globe and investors expressed some nervousness about the U.S. election. Wall Street’s main indexes briefly lost more than 3% as new cases and hospitalizations set records in the U.S. Midwest, and France and Germany planned shutdowns. Advertisement Treasury yields, which are typically driven lower in moments of market volatility by safe-haven demand, were flat on Wednesday afternoon. The benchmark 10-year yield was last unchanged on the day at 0.778%. The two-year yield was last down 0.3 basis point to 0.149%, steepening the yield curve modestly. “The move is anemic. Yields are effectively unchanged,” said Andrew Brenner, head of international fixed income at NatAlliance Securities. “It is because of supply. There is going to be a lot of supply whether Trump wins or Biden wins. There is going to be stimulus.”

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