Treasury Yields plunge as US not assures blanket insurance for all deposits

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US equities were having a ball in the first two days of the week as investors were considering that Federal Deposit Insurance Corp (FDIC) insures all consumer deposits in the First Republic, which will recede fears of the banking crisis and would restore the confidence of investors. However, US Treasury Secretary Janet Yellen commented on Wednesday that there is no discussion on insurance for all bank deposits without approval from the US Congress. She further added, the government "is not considering insuring all uninsured bank deposits."

The rollback of assurance led to a plunge in US Treasury yields and S&P500 as demand for US government bonds went rooftop. The 10-year US Treasury yields have dropped to near 3.45%. The two-year US Treasury yields that move closer to S&P500 have dropped further to near 3.89%.

Apart from the absence of insurance for all uninsured deposits, US Treasury yields have heavily plunged as Fed is considering a pause to the rate-hiking spree.

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