SYDNEY - Asian shares were heading for weekly losses on Friday as conflicting messages on the Sino-U.S. trade war only added to worries for the global economy, while talk of aggressive central bank stimulus drove bond yields to fresh lows.
Beijing on Thursday vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal. The spectacular rally in bonds remained the main investor focus. Yields on 30-year paper hit an all-time low of 1.916% to be down 27 basis points for the week, the sharpest such decline since mid-2012.
Analysts have cautioned that the current bond market is a different beast than in the past and might not be sending a true signal on recession. There were plenty of other signs the cavalry were coming. European Central Banker Olli Rehn on Thursday flagged the need for a significant easing package in September.
I'm not sure if ' bonds' have got it wrong UST 5-30's yield demand is getting driven by negative sovereigns outside of the US( no denying weak global growth) , But UST 2 years are sticking out like a sore thumb however
A buying opportunity soon
Cash is king.