Short-dated U.S. Treasury debt prices were stable on Friday after an early-morning rally pressed two-year yields to 11-month lows. Safe bets became attractive to investors as the market enters the frequently unpredictable year-end period.
Bond traders closely surveyed stocks after a hard fall for the S&P 500 led to a pick up for short dated bonds. The negative outlook; however, faded quickly after stocks outperformed predictions.
Regardless, analysts stated that the overriding flow of bonds favored short dated debt, a safe haven for investors looking to maintain gains from the recovery that began in March.
Investors are hoping to push cash-like assets ahead as the end of the year draws near, start profit-taking in other asset classes and close the books on a positive note. The trend is occurring earlier than expected, likely in response to the volatile marker of late.
Investment in short-dated debt held strong in spite of a string of auctions of $118 billion in two-, five- and seven-year notes scheduled expected at the start of next week and into Thanksgiving.
The two-year Treasury notes price has been preserved at a yield of 0.70 percent after falling to 0.68 percent earlier in the session.
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