Home Stock Market The US Treasury offers higher returns while the ECB is still on...

The US Treasury offers higher returns while the ECB is still on the right track


US Treasury yields were tilted higher in early Thursday trading while the European Central Bank was unchanged.

Treasures are doing?

The yield on 10-year treasury bonds
BX: TMUBMUSD10Y

rose 0.7 basis points to 1.573%, while the yield on the 30-year term
BX: TMUBMUSD30Y

2,270% increase. 2-year bond interest rate
BX: TMUBMUSD02Y

is 0.149%.

What is driving the Treasures?

European Central Bank, as expected, unchanged interest rates and unchanged efforts to buy bonds on Thursday. The ECB said its asset purchases, as was decided at the previous ECB meeting, would continue at a significantly faster pace than the current quarter.

Investors are now turning their attention to the ECB press conference hosted by Christine Lagarde, who can use the opportunity to talk about the economic outlook and recent vaccination efforts.

Yields on 10-year German government bonds
BX: TMBMKDE-10Y

increased 1.4 bps to negative 0.245%.

According to data from the Japanese Ministry of Finance, Japanese investors continued to show their need for foreign loans, earning $ 8 billion in overseas bonds, including the Treasury. Attractive yields, even protected against currency fluctuations, have helped attract low-income foreign buyers to US debt markets.

In US economic data, initial unemployment claims are due at 8:30 a.m. ET, followed by existing home sales for March at 10 a.m.

What did the market participants say?

“As for financial markets, the acceleration of Europe’s vaccination programs so far this quarter, and confidence surveys resilient in the face of tighter restrictions, strong enough to assess the onset of economic recovery. In the world of central banks, they are welcome but too difficult to drive policy change, ”said Antoine Bouvet, senior interest rate strategist at ING.

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