GME GameStop Corp Holding Company

By Anna Hirtenstein

The benchmark 10-year U.S. Treasury bond yield fell below 1% in intraday trading on Thursday, as investors spooked by the volatility in markets sought safety.

The clash over retail-drive stocks such as GameStop is making asset managers nervous, said Andrew Mulliner, a portfolio manager at Janus Henderson.

"It makes people go 'I don't understand what this means' and get ready to duck and cover."

The yield on the 10 year Treasury dropped as low as 0.998% in European morning trading, down from 1.014% on Wednesday, according to Tradeweb.

"Some investors will have bought Treasurys to hedge their portfolios, given the moves seen in risk assets," said Seamus MacGorin, head of global rates at J.P. Morgan Asset Management. "This move in Treasurys might go further if equity markets remain weak."

U.S. government bonds are considered to be the safest assets in financial markets. Yields fall when prices rise, signaling an increase in demand.

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(END) Dow Jones Newswires

January 28, 2021 06:56 ET (11:56 GMT)

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