Crime Today News
Despite strong auctions of 10-year and 30-year debt helping to stabilise the market, investor apprehension remains due to concerns about liquidity and inflation.
Benchmark 10-year Treasury yields rose on Friday and were on track for their biggest weekly increase in more than 23 years as investors remained nervous about further bond market liquidations after a volatile week of trading.
Hedge funds and other asset managers offloaded bonds this week after getting margin calls and posting sharp losses from market volatility, analysts said.
Leveraged investors in particular have been hurt by market whipsaws after U.S. President Donald Trump last week announced bigger than expected tariffs on trading partners, before offering a 90-day pause for most countries on Wednesday.
Strong auctions of 10-year and 30-year debt on Wednesday and Thursday helped stabilize the market somewhat, but many investors remain wary of buying bonds until there is further improvement in liquidity.
“US Treasuries is still considered liquid relative to other asset classes but overall liquidity this week has been on the poorer side as risk appetites of both buyers and sellers have been curbed,” said Phyllis Sim, a U.S. rates trader at financial services firm StoneX.
The 10-year note yield was last up 10.2 basis points on the day at 4.494%, and on track for the largest weekly increase since November 2001.
Thirty-year bond yields rose 7.8 basis points to 4.925%. The yields reached 5.023% on Wednesday, the highest since November 2023. They are up 53 basis points this week, heading for the largest weekly increase since 1982.
The interest-rate sensitive two-year yield rose 1.9 basis points to 3.866%. The yields reached 4.039% on Wednesday, the highest since March 27, and are on track for a weekly gain of 20 basis points, the most since September.
The short-term yields have held at relatively lower levels than longer-dated debt as traders bet that the Federal Reserve may cut interest rates sooner if tariffs slow the economy.
The yield curve between two- and 10-year note yields steepened by around 6 basis points to 62 basis point after reaching 74 basis points on Wednesday, the steepest since January 2022. The curve has steepened by 22 basis points this week, the largest weekly increase since October 2023.
Yields dipped only briefly after data on Friday showed that U.S. monthly producer prices unexpectedly fell in March amid a sharp decline in the cost of energy products, with tariffs on imports are expected to drive inflation higher in the coming months.
Published on April 11, 2025
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