Treasuries are on a roll and is sparking a fresh wave of risk aversion in markets
USD/JPY just fell to a session low of 106.20 as Treasury yields sink amid the 2s-10s falling below 0 bps for the first time since 2007. Of note, US 30-year yields have also fallen to a record low of 2.067% as bonds are continuing their solid rally today.
Equities are also dragged lower on the day as a fresh wave of risk aversion is sweeping across markets. Let’s just recap the news from today:
- China industrial production falls to its weakest annual pace in over 17 years
- Germany’s economy is possibly heading towards a recession
- (Now) US yield curve inverts for the first time since 2007