Risk-Off Trade Gets an Extension

Bonds and bullion climb, dollar wobbles, oil drops, and banks flash stress as the “risk on” trade falters

Key Takeaways

• Bond-Bullion Barbell Shines as Yields Hit Year Lows: The 10-year T-note yield finished yesterday (3.975%) at the lowest closing level of the year (down by -5.4 basis points). The 2-year T-note yield sank to its lowest level since September 2022 (down by -7.2 basis points to just over 3.4%). The total return in the 10-year T-note was +0.5% versus -0.6% for the S&P 500. The beloved bond-bullion barbell turned in a better-than +1.5% total return for the day.