US Treasury yields fall sharply

Monday, July 26, 2021

U.S. Treasury yields fell sharply on Monday as a sell-off in world stock markets, fuelled by losses in Chinese shares, renewed demand for safe-haven government debt, Reuters reports.

Benchmark 10-year Treasury yields fell as much as 6 basis points in London trade.

Analysts said concerns about tensions between China and the United States were also behind renewed demand for one of the world's safest assets.

A top Chinese diplomat took a confrontational tone on Monday in rare high-level talks with the United States, accusing it of creating an "imaginary enemy" to divert attention from domestic problems and suppress China.

World stocks meanwhile were deep in the red, with U.S. stock futures pointing to a weak open for Wall Street.

Asian shares skidded to their lows for this year as concerns over tightening regulations upended Chinese equities.

The U.S. 10-year Treasury yield was last down by 6 basis points at 1.22 percent , heading back towards more than five-month lows hit last week at around 1.13 percent.

Thirty-year bond yields were down almost 7 basis points at 1.86 percent.