US bond market looks expensive if war threat is excluded

New York

THE bond bulls in the US$14 trillion Treasuries market didn't expect - or want - to be proven right in quite this manner. Ramped-up bellicose rhetoric between US President Donald Trump and North Korean leader Kim Jong-un has stoked fears of imminent war, driving 10-year Treasury yields to the lowest level since June.

Unless the two adversaries tone it down, haven demand is likely to overwhelm traders this week, with few economic data releases significant enough to move markets.