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The benchmark 10-year US Treasury has fallen below its 50-day moving average, as implied volatility in the market dips to its lowest level since the US presidential election amid investors’ retreat to safety.

The 10-year Treasury yield dropped to 2.44 per cent on Monday, one basis point below its 50-day moving average of 2.45 per cent. At the same time, the Merrill Lynch optional volatility index (Move) fell to 67.4 – its lowest level since the end of October.

Analysts point to the growing investor nervousness over the political and legal wrangling generated by President Donald Trump’s travel ban as one cause of the “risk-off” sentiment pervading markets on Monday, with equity markets edging back from Friday’s gains.

Copyright The Financial Times Limited 2017. All rights reserved.

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