NEW YORK (MarketWatch) — Treasury prices jumped Monday as market participants shunned risky assets in favor of safe investments like U.S. government debt, sending benchmark yields to their lowest level since early September.
The 10-year note 10_YEAR, +0.00% yield, which falls as prices rise, was down 5.5 basis points on the day at 2.481%, its lowest close since Sept. 8, according to Tradeweb. The yield has fallen for five of the past seven sessions.
Global markets were rattled on Monday by growing political protests from pro-democracy groups in Hong Kong, which impacted the city’s financial industry by forcing the closure of some bank branches.
“It’s a risky world out there at the moment and markets are pretty jumpy, big positions are not advisable,” said David Keeble, global head of interest-rate strategy at Crédit Agricole Corporate and Investment Bank, in a note.
Investors also digested data that showed consumer spending jumped by a seasonally adjusted 0.5% in August. That occurred amid the backdrop of tame inflation, which may take some pressure off the Federal Reserve to raise rates.
Separately, Chicago Fed President Charles Evans said on Monday that inflation expectations may not be as strong a pull on prices as many economists seem to expect.
Amid the focus on inflation, the inflation forecast for the next five years implied by the market for inflation-protected securities fell to 1.71% from 1.72%. Read more: The U.S. market is sending a worrisome signal on inflation
A gauge of pending home sales fell 1% in August after hitting an 11-month high in the previous session.
The 30-year bond 30_YEAR, +0.00% yield fell 5 basis points to 3.168% while the 5-year note 5_YEAR, +0.28% yield dropped 4.5 basis points to 1.758%.
