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INTERIM FINANCIAL STATEMENTS
U.S. Treasury Bonds Stage a Major Rebound – “Sell America” Proves to Be a Big Mistake! Are Institutions Shouting About the Collapse of “American Exceptionalism” Actually Buying U.S. Treasuries in Bulk?
U.S. Treasuries become the 'cleanest dirty shirt,' and 'Sell America' has completely failed. With the Fed shifting towards interest rate cuts, the U.S. bond market has outperformed, leading the global developed market sovereign bond sector.
Asian Value Stock Picks That Investors Might Be Overlooking
Cathay Pacific Haitong: Multiple factors support the performance of Chinese equities; recommend tactically overweighting gold, A-shares, and H-shares.
It is recommended to tactically overweight gold and A/H shares, while maintaining a neutral tactical allocation for U.S. Treasuries, government bonds, and the Renminbi.
U.S. Credit Worries Spark Market Turmoil, Treasury Bonds Rally Highlights Traditional Safe-Haven Status
Just one typical round of safe-haven buying was enough to awaken the dormant U.S. Treasury market and push benchmark yields to their lowest levels in months. Concerns over regional banks’ credit risk exposure emerged last week amid the U.S. government shutdown, which delayed key official data such as employment and inflation figures, stirring up the otherwise calm U.S. Treasury market. Meanwhile, an index measuring bank stocks recorded its largest drop since market turmoil triggered by April's tariffs. As panicked investors flocked to safety, the yield on the policy-sensitive 2-year Treasury note fell below 3.4% to its lowest level since 2022, while the 10-year Treasury yield dropped below 4.
Why Can't the Dollar Stop Rising Amid a Surge in Safe-Haven Buying of US Treasury Bonds?
On Monday (September 29), Beijing time, the U.S. Treasury market experienced a wave of risk-averse buying amid concerns over a potential government shutdown. The yield on the 10-year Treasury note retreated to 4.152%, while the 30-year yield briefly dropped to an intraday low of 4.713%. The overall yield curve exhibited a bull flattening trend. This bout of buying was driven not only by immediate pressures from the fiscal impasse but also by the inertial effect of month-end portfolio rebalancing. Meanwhile, the U.S. Dollar Index edged down by 0.14% to around 90.04, erasing part of last week’s 0.5% gain that had been fueled by cooling expectations of Federal Reserve rate cuts. Equity markets appeared relatively calm, seemingly engaged in a game of brinkmanship with congressional leaders.