10-Year Treasury Yield Falls Sharply Over North Korea Concerns
As geopolitical tensions between the U.S. and North Korea escalated further Friday, Sept. 22, the yield on 10-year Treasury notes dipped 0.86% in mid-morning trading.
Yields had been positive for eight of the last nine days, gaining as much as 3.9% to 2.13 last Tuesday, Sept. 12 on increasing investor confidence. Just after the market open on Friday, the 10-year yield was at 2.24.
In the wake of North Korea's Friday threat to reportedly consider testing a hydrogen bomb in the Pacific Ocean, investors were fleeing to safe haven assets. A decrease in the yield on 10-year notes suggests demand for safer government bonds is surging. At the same time, gold prices were gaining 0.23% early Friday.
Riskier stock market holdings were dragged lower. The Dow Jones Industrial Average, S&P 500 Index and Nasdaq were all trading down mid-morning.
More of What's Trending on TheStreet:
- Rolling Stone Draws 'Robust' Interest for Majority Stake in Iconic Magazine
- Puerto Rico Board Approves $1 Billion for Hurricane Maria Response
- Bitcoin Futures-Based ETF Likely to Be Approved in the U.S. Soon
- How to Fire People Like Former General Electric CEO Jack Welch