US bonds rally on flight to quality bids amid bubble fears in stocks — TradingView News

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By Davide Barbuscia and Gertrude Chavez-Dreyfuss

U.S. Treasuries rose on Tuesday, pushing yields lower, with a boost from safe-haven bids amid concerns that overstretched valuations in stocks and corporate bonds could eventually lead to a market correction.

A tech-fueled stock rally lost momentum, as top Wall Street executives including the chief executives of Morgan Stanley MS and Goldman Sachs GS cautioned that equity markets could be heading toward a drawdown.

The economic calendar was empty due to the U.S. government shutdown, which on Tuesday entered its 35th day, matching a record set during President Donald Trump’s first term for the longest in history.

This left the bond market directionless, except for safe-haven demand spurred by fears of a market bubble in stocks.

“There’s definitely a risk-off tone with a lot of AI stocks down, and so a little bit of flight to quality with regard to Treasuries,” said Greg Faranello, head…

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