Bond Prices Rally as Equities Pressured; GDP Up – 10-Year 3.077%

US Treasury prices rallied Friday, taking yields sharply lower as risk aversion rose as equities were pummeled. The two-year Treasury rate was down 5 basis points at 2.798%, and the 10-year yield was off more than 4 bps at 3.077%.

UK Gilts were outperforming with the yield off 5.3 bps at 1.386%. The German Bund was down 4.8 bps at 0.347%. The Japanese Government Bond finished 0.6 bps lower at 0.099%. Italy was one of the few sovereigns seeing cheaper rates with the BTP up 3 bps. Stocks renewed their declines after Thursday’s pop higher as Amazon and Google disappointed after hours Thursday, causing a rethink of valuations. And there were ongoing concerns over Italy, as well as trade/tariffs.

US futures were sharply lower, in tandem with hefty declines in Europe with the DAX down 1.88% and the FTSE off 1.35%. Asian markets all closed lower too, though losses were more modest. Oil prices tanked again, wiping out Thursday’s gains.

Data due offers the Advance Q3 gross domestic product report at 8:30 am ET. The final October University of Michigan consumer sentiment is due at 10 am.