Treasury securities strengthened on Wednesday as U.S. first-quarter economic growth slowed more than forecasted, boosting demand for safe-have government debt. Weak U.S. GDP number fueled speculation the Federal Reserve won’t accelerate pace in withdrawing monetary stimulus. In recent trading, the benchmark 10-year yields dropped 3 basis points (bps) to 2.66%, while 5-year note yield declined 4 bps to 1.70%.
Developing-country stocks are heading for the biggest weekly loss in six weeks amid mounting tensions over Ukraine. The benchmark MSCI Emerging Market Index dropped 0.9% to the lowest level since April 1 in afternoon trading, extending its weekly drop to 1.6%. China’s Shanghai Composite Index fell 1% at the closing, and it slumped 2.9% this week amid concerns over Chinese economic slowdown. The developing-country stock gauge has declined 0.8% thus far this year, compared with a 1.2% gain for mature-market gauge.