U.S. Treasurys appeared to catch a safe haven bid Wednesday as lingering concerns over Turkey's financial crisis continued to spook traders around the globe.
Turkey's financial troubles have recently sparked fear of contagion with the country's currency having taken a deep slide in recent trading sessions. The free fall in the Turkish lira has put investors on edge and continues to be watched closely.
"The story for this week is clearly centered on Turkey, tariffs, the dollar, and weakness in the equity market," Kevin Giddis, head of fixed income capital markets at Raymond James, said in an emailed statement. "The economic data all but confirms that the U.S. economy is strong, but long-end investors prefer to trade with August data vs. July, so they merely shrugged it off and focused on a 'flight to quality' trade…with legs."
Pressure has been ramped up in recent days, as market-watchers became jittery over the Turkish president's control of the economy and U.S. leader Donald Trump saying last week that he was in support of doubling metal tariffs on the Middle Eastern country.