Advertisement
UK markets close in 2 hours 50 minutes
  • FTSE 100

    8,117.42
    +38.56 (+0.48%)
     
  • FTSE 250

    19,792.50
    +190.52 (+0.97%)
     
  • AIM

    754.68
    +1.56 (+0.21%)
     
  • GBP/EUR

    1.1671
    +0.0014 (+0.12%)
     
  • GBP/USD

    1.2520
    +0.0009 (+0.07%)
     
  • Bitcoin GBP

    51,427.88
    +411.42 (+0.81%)
     
  • CMC Crypto 200

    1,383.71
    -12.82 (-0.92%)
     
  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     
  • DOW

    38,085.80
    -375.12 (-0.98%)
     
  • CRUDE OIL

    84.27
    +0.70 (+0.84%)
     
  • GOLD FUTURES

    2,358.70
    +16.20 (+0.69%)
     
  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     
  • HANG SENG

    17,651.15
    +366.61 (+2.12%)
     
  • DAX

    18,056.85
    +139.57 (+0.78%)
     
  • CAC 40

    8,053.42
    +36.77 (+0.46%)
     

TREASURIES-Bond prices edge up as 'skittish' investors add to stocks

* Investor (LSE: 0NC5.L - news) concerns about slowing global growth remain

* 5-year yield falls to lowest since June 2013

* Traders look to Yellen comments on Wednesday (Updates market action, adds quote)

By Tariro Mzezewa

NEW YORK, Feb 9 (Reuters) - U.S (Other OTC: UBGXF - news) . Treasury prices edged higher during choppy trading on Tuesday as investors concerned about slowing global growth largely shunned equities, opting instead to add to safe-haven U.S. government debt.

In addition to concern about a global economic slowdown, investor worries about banks' exposure to the energy sector and expectations that interest rates will rise at a slower than expected pace drove Treasury yields down. The yield on the 5-year note fell to 1.10 percent, its lowest since June 2013.

ADVERTISEMENT

"The mood in the market is very much 'sell today, ask questions later' which is a boost for Treasuries and that flight to safety is led by fear," said Gennadiy Goldberg, interest rate strategist at TD Securities in New York.

Treasury price gains were limited by sporadic equity rebounds led by investors hoping a technology stock rally would outweigh losses in energy and financial shares throughout the day.

"Stocks found a bottom so Treasuries are adjusting and trading in line with that, but investors are still skittish," said Stanley Sun, interest rate strategist at Nomura Securities International in New York.

For much of the year, Treasury prices have been benefiting from investors' worries about a sustained slowdown in global growth and falling oil prices.

"We began with concerns regarding China, then those were amplified by oil declining even further and that's led to concerns in the financial sector," said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon.

Benchmark 10-year notes were last up 2/32 in price to yield 1.731 percent, down from 1.735 percent late on Monday.

The 30-year bond was last up 4/32 in price to yield 2.555 percent, down from 2.56 percent on Monday.

Investors will be listening closely to Federal Reserve Chair Janet Yellen on Wednesday when she delivers a semiannual monetary policy testimony before the House Financial Services committee.

U.S. bonds are expected to continue attracting demand on concerns about the global economic slowdown and because Treasuries pay higher yields than comparable sovereign bonds in Europe and Japan.

Chinese markets are closed through the week for the Lunar New Year. (Reporting by Tariro Mzezewa; Editing by Lisa Von Ahn and Frances Kerry)