With stocks halted limit down, 30-year bonds go parabolic

30-year Treasury futures go on an unprecedented tear, now +6.4% since Friday! Recently, 30-year bonds yielded 0.7%. No, that’s not a typo.

The 10-year Treasury yield dropped as low as 0.36%, down more than 40bps from Friday’s close.

Meanwhile, in Germany 10-year yields tumbled to -0.85%.

It’s possible that traders are using bonds to offset stock positions, given their inability to do with equity futures due to CME trading halts.

Stock futures will remain halted until the open down 5%, or until they trade higher. Euro Stoxx futures, unencumbered by trading limits, are down 9.9%.

See overnight limit-down rules here.

https://seekingalpha.com/news/3549602-stocks-halted-limit-down-30-year-bonds-go-parabolic