Treasury Traders Defy Fear Stirred by Emerging-Market Turmoil (Bloomberg)

Treasury Traders Defy Fear Stirred by Emerging-Market Turmoil (Bloomberg)

Bloomberg Aug 14, 2018


Rates traders are showing little concern that the Turkey-induced turmoil spreading across emerging markets will extend stateside. Yields held steady Monday and strategists saw limited potential for a surge in safe-haven demand.

Treasuries posted modest gains last week, but are still trading well within recent ranges. The market hasn’t picked up a strong flight-to-quality bid, even as Turkey stares down a growing financial crisis, and nations from Argentina to South Africa start to feel the stress. The 10-year yield was virtually unchanged Monday, while Bank of America Corp.’s MOVE Index, a measure of volatility, remained below its one-year average.

(Source: Bloomberg)