Sharp midday drop in Treasury yields

|By:, SA News Editor

Stocks are only down moderately - the S&P 500 (SPY -0.5%) - but Treasurys are trading as if something bad is on the way, with the 10-year yield diving a full ten basis points over the past couple of hours and now yielding 2.66%.

A credit bust-up or economic slowdown in China always makes for a good excuse and it's notable that the fall in yield came alongside about a $0.04 decline in copper to a new 4-year low of $2.93 per pound.

TLT +1%, TBT -1.9%.

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