US Treasury bonds have rebounded from intense global bond sell-offs, pressure from the European market has fueled safe-haven demand, and 10-year US bond yields have fallen from 24-year highs. On Thursday, the rebound in the US bond market intensified. Concerns raised by France's fiscal and political situation are driving up risk premiums in the Eurozone. The yield on British long-term treasury bonds rose above 6% at one point. In the US, safe-haven demand drove two-year treasury yields down 13 basis points to 4.75%, the biggest one-day decline since August 2025. Izaac Brook, an American interest rate strategist at RBC Capital Markets, said, “Thursday's market was largely unrelated to US fundamentals and US data. Everyone is looking at overseas yields and then saying, 'We need to switch to safe assets and buy US Treasury bonds. '” In Washington, the Trump administration has been trying to slow down the decline in bonds by increasing repurchases of long-term treasury bonds. The US Treasury repurchased $6 billion of 10-20 year treasury bonds in an operation on Thursday. Federal Reserve Vice Chairman Philip Jefferson also said that policymakers may need more time to decide on next steps. Traders currently expect the probability that the Federal Reserve will raise interest rates this month in about 1 in 4. Swap spreads have narrowed rapidly, indicating that crowded positions established over the past few weeks are being lifted.
Zhitongcaijing · 1d ago
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US Treasury bonds have rebounded from intense global bond sell-offs, pressure from the European market has fueled safe-haven demand, and 10-year US bond yields have fallen from 24-year highs. On Thursday, the rebound in the US bond market intensified. Concerns raised by France's fiscal and political situation are driving up risk premiums in the Eurozone. The yield on British long-term treasury bonds rose above 6% at one point. In the US, safe-haven demand drove two-year treasury yields down 13 basis points to 4.75%, the biggest one-day decline since August 2025. Izaac Brook, an American interest rate strategist at RBC Capital Markets, said, “Thursday's market was largely unrelated to US fundamentals and US data. Everyone is looking at overseas yields and then saying, 'We need to switch to safe assets and buy US Treasury bonds. '” In Washington, the Trump administration has been trying to slow down the decline in bonds by increasing repurchases of long-term treasury bonds. The US Treasury repurchased $6 billion of 10-20 year treasury bonds in an operation on Thursday. Federal Reserve Vice Chairman Philip Jefferson also said that policymakers may need more time to decide on next steps. Traders currently expect the probability that the Federal Reserve will raise interest rates this month in about 1 in 4. Swap spreads have narrowed rapidly, indicating that crowded positions established over the past few weeks are being lifted.
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