For the first time in history! U.S. 10-year Treasury yields fall below 1%

China-Singapore Jingwei Client, March 4th, Beijing time On March 4, the 10-year US Treasury yield fell below 1%, the first time in history. As of press time, it had fallen to 0.988%.

According to foreign media reports, the benchmark 10-year U.S. Treasury yield fell below 1% on Tuesday, the first time on record, as investors began to seek safe-haven assets after the Federal Reserve cut interest rates earlier than expected.

U.S. 10-year Treasury yields

It is understood that the historical low of the 10-year US Treasury bond rate was 1.318% reached in July 2016. At that time, after the Brexit referendum, British government bonds led the bond market.

According to Tradeweb, in recent transactions, the yield on US 10-year Treasury notes was 1.0855% on Monday. It hit a historical intraday low of 1.031% on the day.

Wall Street Chinese pointed out that the 10-year US Treasury yield was originally slightly higher than Monday's level, but it turned around sharply after the Fed announced a 0.5 percentage point cut in key policy rates.

The Federal Reserve announced on the 3rd that it will cut the target range of the federal funds rate by 50 basis points to the level of 1% to 1.25%. This is the first time this year that the Federal Reserve has cut interest rates in response to the risk of economic activity caused by the new crown epidemic. This is the first time the Federal Reserve has cut interest rates urgently since the most critical moment of the global financial crisis.

On Tuesday, U.S. 10-year Treasury rates fell to a record low of 1.3171%, and investors are seeking hedging as investors worry that the global spread of new crown pneumonia is threatening supply chains that are vital to economic growth.

As global stock markets plummeted, other safe-haven bond markets also rose. German and Dutch 30-year Treasury rates fell to below zero for the first time since October.

Forex broker Oanda said that risk aversion seems to continue, and all signs point to increased fears that will keep yields falling across the board. U.S. Treasury yields are expected to fall to much lower levels than Monday's levels in the next two weeks. (Zhongxin Jingwei APP)