Tech Stock Sell-Off Ignites Safe-Haven Demand, U.S. Treasuries Rise Alongside Global Bonds

TechFlow news, Oct. 30, during Friday's Asian trading hours, U.S. Treasury gains accelerated as a sell-off in U.S. tech stocks drove investors into U.S. government bonds for safety. Yields across all Treasury maturities fell by at least 3 basis points, extending declines from the New York session. Australian, Japanese and New Zealand bonds followed higher, with their respective benchmark 10-year government bond yields falling more than 5 basis points. Risk-off sentiment intensified after disappointing earnings from tech giants including Alphabet, further fueling market doubts about the sustainability of the AI trade. In October, the benchmark 10-year U.S. Treasury yield has fallen nearly 40 basis points and is poised to record its first monthly decline since February.

Kenneth Crompton, head of rates strategy in Sydney at National Australia Bank, said bonds rose this morning and risk-off sentiment again drove inflows after this week's tech company earnings. Andrew Ticehurst, senior rates strategist in Sydney at Nomura Holdings, said persistent market anxiety over valuations of hyperscaler tech companies, combined with Alphabet's disappointing earnings, is drawing some safe-haven flows into the bond market. The rally may continue because Warsh's remarks at the post-meeting press conference were not seen as particularly hawkish, and these AI-related concerns appear set to persist. (Jin10)

Source: TechFlow