|Unlike the violent fluctuation in the energy market and the great
volatility in the stock market, the U.S. Treasury market has been
particularly calm in recent weeks, and no one can say where it’s heading
to.To get more news about WikiFX, you can visit WikiFX news official website.|
After the initial shock of the coronavirus epidemic, many bond traders
were neither able nor willing to bet on the direction of US Treasury
yields. The benchmark U.S. 10-year Treasury yields, after
roller-coastering in March from a record low of 0.31% to a high of
1.27%, fluctuated in a much smaller range of 0.54% to 0.78% in April.
According to the institutional investor survey data released by JP
Morgan Chase, two-thirds of the surveyed institutions have become more
neutral in terms of fund allocation, a proportion close to the highest
level in the past two years. This situation indicates that there are few
large-scale risk-taking investments at the moment.
Most bond yields have been trading in a tight range, which means that
investors are still holding out to see whether the United States can
escape the whirlpool of deflation. A large amount of fixed-income
futures positions were closed in March, and since then, the size of the
open interest has hardly changed, and has been hovering around the
lowest level since 2017.