US 10-year Treasury yields are down by nearly 7 bps to 1.777%
Just last week alone, 10-year yields fell by a remarkable 23 bps. You would've thought that the Fed was the one causing all the stir but it is all about the fallout in US-China trade talks as Trump signaled new tariffs late on Thursday in a surprise move.
Since then, risk sentiment has soured in markets and the ongoing threat of another "cold war" is seeing bonds rally amid heavy haven flows to start the new week. In turn, that is helping push gains into the yen and franc as well in the currencies space.
There has been some astounding moves in the global bond market since last week and we may potentially see even more of that this week.
Although Australian banks aren't in action today, I reckon 10-year yields in the land down under is likely to be on the verge of falling below the RBA cash rate of 1.00% ahead of the central bank monetary policy decision tomorrow.
In case you missed out on last week's action:
