This Market Is Rallying and It Should Terrify Stock Market Bulls
Even as the equities market achieved moderate gains Wednesday, Sept. 6, U.S. Treasuries staged a rally as investors fled to safer debt in the face of threats from North Korea and impending destruction from Hurricane Irma.
The yield on 10-year notes fell to 2.09% early Thursday, Sept. 7, one day after opening at the lowest level since just after the presidential election in November. Treasury yields recorded their steepest one-day decline since May 17 on Tuesday, Sept. 5, falling 9 basis points.
At the same time, gold prices were up $5, or 0.37%, to $1,344 per ounce on Thursday morning.
The rally for safe-haven assets comes after North Korea detonated its biggest nuclear device yet this weekend. The launch prompted the Trump administration to promise a "massive" attack on North Korea if the U.S. or its allies were threatened.
Category 5 Hurricane Irma is bearing down on Florida and the Caribbean, bringing with it destruction that could top the devastating effects of Hurricane Katrina in 2005. If the storm continues on its current trajectory, it could be the first hurricane to make landfall as a Category 5 storm since Andrew in 1992.
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