You are browsing the Hong Kong website, Regulated by Hong Kong SFC (CE number: BJA907). Investment is risky and you must be cautious when entering the market.
U.S. bond sell-off fades! Traders enter “bottom-fishing” market as “global asset pricing anchor” hits 4.5%
uSMART盈立智投 11-25 10:46

Following a protracted period of downward pressure, the U.S. bond market has exhibited indications of stabilization. Notably, as the pivotal 10-year U.S. Treasury yield, recognized as the "Global Asset Pricing Anchor," reached 4.5% on November 15th, a conspicuous surge in purchasing interest materialized, prompting traders to actively pursue opportunistic buying strategies.

 

 

Subsequent to the breach of the 4.5% threshold on November 15th, the 10-year U.S. Treasury yield promptly reversed its trajectory and refrained from exceeding this benchmark in subsequent trading sessions. The conclusion of last week witnessed the closure of the 10-year Treasury yield at 4.4%, reflecting a marginal 3 basis point decrease from the previous week's conclusion. This transition signifies a resurgence in interest towards U.S. Treasuries, particularly as their allure escalates notably amidst yield levels surpassing 4%.

(Source:Bloomberg)

 

Erin Browne, a portfolio manager at Pacific Investment Management Company, characterized U.S. Treasuries as assets characterized by "minimal volatility and robust returns." She emphasized that a potential ascent of the 10-year Treasury yield to 5% would evoke a heightened inclination towards more assertive purchasing behaviors. This narrative underscores the burgeoning appeal of U.S. Treasuries as an investment vehicle, especially within a global landscape marked by subdued interest rates.

 

Presently, diverse U.S. Treasury yields have demonstrated variances. As per Sina Finance's data, the 1-month Treasury bill yield stands at 4.6170%, the 3-month bill yield at 4.6040%, the 10-year Treasury yield at 4.3570%, and the 30-year Treasury yield at 4.5430%.

 

Moreover, in accordance with the latest publication from the U.S. independent research entity, the Federal Accountability Office, the aggregate U.S. debt has surpassed $36 trillion this week, reaching an unprecedented pinnacle. The transition from $35 trillion at the conclusion of July to the current $36 trillion within a span slightly exceeding three months delineates an accelerated pace of U.S. debt expansion.

 

 

Investment Pathways

Investors can purchase U.S. Treasuries through the uSMART HK app, which offers four compelling reasons to invest in U.S. bonds:1. Low Entry Barrier: No income review required, with a minimum investment of $800.2. Diverse Options: Bonds are available in short-term, medium-term, and long-term categories.3. Convenient Investment: No locking period, with attractive returns.4. High Security: Provides a high level of safety, with a favorable risk-return profile.

Follow us
Find us on Facebook, Twitter , Instagram, and YouTube or frequent updates on all things investing.Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app!
Disclaimers
uSmart Securities Limited (“uSmart”) is based on its internal research and public third party information in preparation of this article. Although uSmart uses its best endeavours to ensure the content of this article is accurate, uSmart does not guarantee the accuracy, timeliness or completeness of the information of this article and is not responsible for any views/opinions/comments in this article. Opinions, forecasts and estimations reflect uSmart’s assessment as of the date of this article and are subject to change. uSmart has no obligation to notify you or anyone of any such changes. You must make independent analysis and judgment on any matters involved in this article. uSmart and any directors, officers, employees or agents of uSmart will not be liable for any loss or damage suffered by any person in reliance on any representation or omission in the content of this article. The content of the article is for reference only and does not constitute any offer, solicitation, recommendation, opinion or guarantee of any securities, virtual assets, financial products or instruments. Regulatory authorities may restrict the trading of virtual asset-related ETFs to only investors who meet specified requirements. Any calculations or images in the article are for illustrative purposes only.
Investment involves risks and the value and income from securities may rise or fall. Past performance is not indicative of future performance. Please carefully consider your personal risk tolerance, and consult independent professional advice if necessary.
uSMART
Wealth Growth Made Easy
Open Account