Treasury yields were higher early Wednesday as global markets continued to reverse course from a dramatic equity sell-off.
The benchmark 10-year Treasury yield was around 5 basis points higher at 3.936% at 7:07 a.m. ET. The yield on the 2-year note also climbed more than 4 basis points to 4.028%.
Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%
Stock markets around the world tumbled across Friday and Monday on growing nerves about a U.S. economic downturn, and the knock-on impact of a hawkish pivot by the Bank of Japan. That bolstered so-called safe haven assets including Treasurys, sending the 10-year yield to its lowest level since June 2023.
Stocks have since regained some positive momentum, with Asia-Pacific and European markets trading higher Wednesday, along with U.S. futures.
To be sure, investors need to remain vigilant, AmeriVet Securities’ Gregory Faranello said.
“We are viewing this as a de-risking period, but you always need to be careful. These positions build over time and we have more room to go. So, we expect things to be volatile going forward,” Faranello, the firm’s head of U.S. rates, said in a note Tuesday.
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