Government Bonds Take Off Ahead Of The Clinton-Trump Debate
Global stocks slumped on Monday as investors anxiously awaited the U.S. presidential debate between Democrat nominee Hillary Clinton and her Republican rival Donald Trump later on Monday. Traders reduced their exposure to stocks, also due to the risk averse sentiment triggered by the troubles being faced by Deutsche Bank’ vis-a-vis the US Department Of Justice.
As a result, capital flooded safe-haven assets including U.S government-bonds. U.S 10-year note prices gained, pushing the yield below 1.6% for the first time in nearly two weeks. Bond yields move inversely to prices.
As the perceptions of a Fed rate hike and the number of rate hikes in the near future get diluted, prices of US government debt may see further appreciation.
Trade suggestion
Buy Digital Call Option from 131.30 to 131.80 valid until 20:00 GMT September 26, 2016
