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US Treasuries were rallying hard after the opening bell on Tuesday, even as major US equities indices were dragged into the red by declines in the financials and tech sectors.
Yields on the benchmark 10-year Treasury — which move inversely to their price — were down nearly 7 basis points to 2.29 per cent, while the more policy-sensitive 2-year were off 4.4 basis points to 1.23 per cent. Yields on the 30-year were also off 5.8 basis points to 2.93 per cent.
The flight to safety comes as the tech-heavy Nasdaq was leading the equity-market declines, off nearly 1 per cent at 5,824. The S&P 500 was down 0.75 per cent to 2,339, and the Dow Jones was also trading 0.6 per cent lower at 20,536.
One of the biggest drags of the day so far is Apple, whose shares had fallen 1.8 per cent since the open amid fears that it is planning to replace chips from a key supplier Dialog Semiconductor. Other tech stocks seeing a sell-off included Micron Technologies, down 3.1 per cent, Qualcomm, off 2.4 per cent, Texas Instruments, down 2.1 per cent and Intel, off 1.5 per cent.
Ahead of the first round of quarterly bank earnings this week, financials were also in the red, led by the likes of Wells Fargo and Morgan Stanley, both down more than 2 per cent before lunchtime in New York.
United Continental — parent of United Airlines, which is mired in a scandal after video surfaced of a passenger being forcibly removed — was also falling hard, down nearly 4 per cent at pixel time.