Treasury Yields Stay High Amid Fluctuating Stock Market
US stock markets showed signs of recovery but later declined. Meanwhile, US Treasury yields continued to rise amid concerns over a potential recession.
Key points include:
- Investors may be shifting from bonds to cash or equities due to market volatility.
- Foreign bond holders might be selling off US Treasurys as a response to tariffs, although data on this won't be available until later this month.
- As of January, Japan held $1.08 trillion in US Treasurys, followed by China with $761 billion and the UK with $740 billion.
- The 10-year Treasury yield exceeded 4%, reaching approximately 4.2%. The one-year yield fluctuated around 3.9% after briefly hitting 4%.