Short exit stampede at 1.4% drives US Treasury yield slump, traders say

2021-07-07 22:57:00

LONDON: An unwinding of bets by some hedge funds against 10-year US Treasuries, the world’s safest asset, explains the sudden ructions in bond markets, traders and fund managers told Reuters on Wednesday.

Yields on 10-year Treasuries, which move inversely to prices, recently stood at around 1.30 per cent in New York trading after falling to a more than four-month low of 1.296 earlier in the session. They are now more than 45 bps below a January 2020 high

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Cash keeps flowing into equities and bonds: BofA

2021-07-02 16:08:04

LONDON: Investors kept on injecting more cash into bonds and equities, BofA‘s latest fund flow statistics showed on Friday, as Wall Street hit new record highs and US government bond yields remained capped below 1.5%.

Fixed income funds attracted $13.2 billion and equities sucked in $9.6 billion in the week to Wednesday, while $25 billion left money market funds, the U.S. investment bank said, citing EPFR data.

This was the sixteenth straight week of inflows for

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View: Bonds give inflation a body-swerve

LONDON: One of the highest U.S. inflation prints in decades has drawn a stifled yawn from bond markets, making it harder to see what – short of a dramatic and unlikely central bank rethink – could budge long-term borrowing rates much further.

The Federal Reserve‘s $80 billion per month of Treasury debt buying is one obvious reason for the relative stasis. But it’s not the only factor.

Overseas demand for U.S. Treasuries is brimming just as new sales of

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