US 10-year treasury yield hits three-week lows

• US 10-year Treasury yield fell to three-week lows in Asia.
• Risk aversion has triggered a flight to safety.

The yield on the US 10-year treasury note fell to 3.10 percent in Asia - the lowest level since Oct. 3, possibly due to risk aversion in equities and the resulting flight to safety.

The yield fell six basis points yesterday as the Dow Jones Industrial Average (DJIA) dropped more than 600 basis points.

Looking forward, the yields may fall further as the Asian equities are a sea of red. More importantly, the S&P 500 has found acceptance below the all-important 50-week exponential moving averages (EMAs). As a result, a deeper drop in the equities could be in the offing.