U.S. Treasuries jump on safe-haven demand as geopolitical concerns continue

The U.S. Treasuries jumped Monday, following rising demand for safe-haven assets as geopolitical concerns subside but cannot be completely ruled out.

The yield on the benchmark 10-year Treasury slumped 1-1/2 basis points to 2.21 percent, the super-long 30-year bond yields traded downside flat at 2.88 percent and the yield on short-term 2-year note fell nearly 1-1/2 basis points to 1.18 percent by 11:40GMT.

North Korea on Sunday made what was believed to be a failed missile test launch, increasing geopolitical risks. Regional tensions have risen over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang.

With the first round of France’s presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios after Trump’s surprising U.S. presidential win in November and Britain’s unexpected exit from the European Union in July.

Lastly, investors remain keen to watch the country’s industrial and manufacturing production for the month of March, scheduled to be released later in the day for further direction in the debt market.

Meanwhile, the S&P 500 Futures traded 0.06 percent lower at 2,326.00 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -121.16 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex