U.S. Treasury yields were higher early Wednesday as global markets continued to reverse a sharp sell-off in stocks.
benchmark 10-Year Treasury Bond At 7:07 a.m. ET, the yield was up about 5 basis points to 3.936%. The rate of return is 2 years Notes also climbed more than 4 basis points to 4.028%.
The yield and price move in opposite directions, with 1 basis point equivalent to 0.01%
Global stock markets plunged on Friday and Monday as nervousness grew over a U.S. recession and its knock-on effects. Bank of Japan turns hawkish. That boosted so-called safe-haven assets including U.S. Treasuries, sending the 10-year yield to its lowest level since June 2023.
The stock market has since regained some positive momentum, Asia Pacific and European Markets traded higher on Wednesday while US futures.
To be sure, investors need to remain vigilant, said Gregory Faranello of AmeriVet Securities.
“We think this is a de-risking period, but you always need to be careful,” said Faranello, head of the company. “These positions will increase over time and we have more room. So we expect that going forward Things will fluctuate.
