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The yield on the benchmark US Treasury note slipped to its lowest level since late November, highlighting the recent fraying of the Trump trade.

Investors bid up the 10-year Treasury on Friday, sending the yield down 5.3 basis points to 2.319 per cent, its lowest point since November 29, according to Bloomberg data. The 2-year yield was off by 3.37bps to 1.149 per cent.

Expectations that the Trump administration will roll out business-friendly policies have helped propel risk assets, like US stocks, sharply higher following the presidential election in November. But the trade has begun to lose some of its momentum as analysts note that policy changes may take more time to materalise than some had hoped.

Some market strategists have also grown concerned that US stocks, which hit record highs this week, could be bubbling up too rapidly, given the potential for policy disappointments or a slip in economic data.

That has been a boon this week for defensive assets, like Treasuries. Utilities stocks, which tend to perform like bonds because of their juicy dividends, are also having their best week since September.

Copyright The Financial Times Limited 2017. All rights reserved.
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