Stock market panic drives safe haven buying; U.S. 10-year Treasury yield falls by 10 basis points

According to foreign media reports, panic selling in the stock market has prompted funds to buy government bonds as a safe haven. The yield on the US 10-year Treasury note fell by 10 basis points to 5.089%. The yield on Germany’s 10-year government bond dropped by 8.5 basis points to 3.3819%, the lowest level since September 9. France’s 10-year government bond yield decreased by 11.5 basis points to 4.7619%, the lowest level since October 6. Italy’s 10-year government bond yield fell by 10 basis points to 4.4657%, the lowest level since September 23. Prashant Newnaha, Senior Rate Strategist at TD Securities, stated: “US CPI unexpectedly rose, yet bonds rallied afterwards, which is highly counterintuitive. The most reasonable explanation is that the sharp decline in the artificial intelligence sector is downgrading the market’s growth expectations, making bonds a tool to hedge stock market risks.”