Risk aversion creeping in
I think the falls in yields and stock markets today are doubly worrying because of the context. Both fell Friday on worries about US-China trade talks falling apart but that turned out to be a false alarm.
So that put a positive catalyst in place. However that's been completely wiped out by poor Eurozone PMIs and worries about global growth.
US 2-year yields are down 4.3 bps to 1.64%.
The Sept 12 low of 1.6277% is the short-term level to watch.
In the bigger picture, it's beginning to look like the September bounce in risk is fading.
