Treasury yields dribble lower in European morning trade

10-year Treasury yields fall over 5 bps to 1.641%

USGG10YR

As much as a relief in the bond market may be good news for general market sentiment, the latest push lower in yields has that sense of a risk-off element to it.

The tone in the market is erring towards being more defensive and cautious as Turkey keeps emerging markets on edge, Europe bracing itself for a third virus wave with German extending lockdown until 18 April, and China risk appetite is looking rather shaky.

Adding to that is a stronger dollar as well, with the antipodeans sinking today. NZD/USD is hovering at three-month lows, down by 1.4% on the day after having seen key technical levels breached and looking poised for a potential push towards 0.7000 next.

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