U.S. Treasuries Head Higher on Bond Market

Bond yields drop as China voices support for U.S. assets

U.S. Treasuries are heading higher on the bond market today, thanks to earlier gains by the U.S. dollar on comments from China. It is important to note that Treasury bond prices move opposite yields, so as Treasuries gain, yields drop. MarketWatch describes the changes to the bond market this morning:

Longer-dated debt gained more than short-term securities as investors reversed trades that bet on long-term yields rising more due to inflation, greater debt issuance, and an economic recovery making other assets more attractive.

However, things might change in the near future, depending on how investors view the economy, and on whether or not the Dow can hold on to its early gains in the stock market.