NEW YORK (MarketWatch) — U.S. Treasurys gained ground, pulling down yields, as investors awaited U.S. leading economic indicators from the Conference Board and digested Scotland’s rejection of an independence referendum.
The yield on the 10-year U.S. Treasury 10_YEAR, +0.08% fell 1.5 basis points to 2.601%. Yields move in the opposite direction of price. The yield on the 2-year note 2_YEAR, +3.19% was little changed at 0.565%, while the 30-year T-bond yield 30_YEAR, +0.03% fell 1.75 basis points to 3.332%. Yields fall as bond prices rise.
Yields had risen overnight after Scotland voted “no” on a referendum on whether the country should exit the United Kingdom. Uncertainty over the vote had previously provided some support for Treasurys, which typically serve as a safe haven for investors during periods of political turmoil.
“One of the last major market events of a busy week, the Scottish referendum, failed to encourage significant market volatility, with 55% of Scotland voting to stay within the U.K.,” said Gennadiy Goldberg, U.S. strategist at TD Securities, in a note.
The yield on the 10-year Treasury rose Thursday to its highest level since early July, as investors continued to weigh the Federal Reserve policy statement and comments by Fed Chairwoman Janet Yellen a day earlier. The Fed maintained its commitment to keep rates low for a “considerable” period, but indicated that hikes would come a bit faster than had been expected when they start.
It’s a light day on the economic calendar, featuring only the August leading indicators at 10 a.m. Eastern. The index of indicators rose 0.9% in July.
