Treasury Market Summary
Treasury Market Summary: yields plunged, sending the bond below the 2% for the first time ever, and a new all-time low at 1.914%. The 10-year dropped to 1.47% and the 2-year tested 1.46%, before rates edged up slightly. The curve steepened out over 3 bps. While the latter helped support equities, trading was very choppy. Also impacting the markets Thursday were a mix of trade comments from China, with some conciliatory remarks underpinning equities. Also, ECB's Rehn's call for "impactful and significant" stimulus in a WSJ interview added to the drop in yields. Meanwhile, better than expected retail sales and productivity data, and a solid earnings beat from Walmart boosted equities. Wall Street pared its gains and fell into the red as the 10-year yield fell below the 1.50% mark, but it bounced and stocks recovered slightly, though an anxious tone prevailed. The Bank of Mexico surprised somewhat with a 25 bp cut to an 8.00% policy rate. View the summary.