US government bond yields fall amid global decline in rates — CNBC
US government bond yields fell on the morning of September 21, tracking global market moves amid lower oil prices. The yield on benchmark 10-year US Treasury notes declined by about 3 basis points to 4.967%, CNBC reports. Last week, the indicator reached a 19-year high of 5.041%.
Yield movements
The yield on two-year Treasury notes fell by about 1 basis point to 4.729%. For 30-year securities, it declined by 3 basis points to 5.306%.
A basis point equals 0.01 percentage points. Bond prices and their yields move in opposite directions: when bond prices rise, yields decline.
Yields also mostly declined in European markets. The yields on Germany's 10-year government bonds, considered the benchmark for the eurozone, and on UK 10-year bonds fell by 5 basis points. Japanese markets were closed on Monday.
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Factors for investors
Market sentiment was supported by lower oil prices, which helped stock markets rise despite ongoing hostilities in the Middle East. World leaders are due to gather for the UN General Assembly this week, while Washington is increasing pressure on Tehran over an agreement to restore trade flows through the Strait of Hormuz.
Investors are also assessing the US Federal Reserve's 0.25-percentage-point interest rate increase last week and the possibility of further hikes by the end of the year. The European Central Bank also raised rates in the eurozone this month, while the Bank of England left its rate unchanged at its latest meeting.
This week, markets will watch S&P Global business activity indices due on Wednesday, US initial jobless claims data on Thursday, as well as speeches by New York Federal Reserve Bank President John Williams, Richmond Federal Reserve Bank President Tom Barkin and other central bank officials.
