The U.S. government’s long-term debt on Friday morning came under some selling pressure, pushing prices lower and yields higher, but treasury bond yields remain down for the week, with earnings experts Fixed some yield declines due to short-term hedge funds and concerns about tensions between Russia and the US
Treasures work like?
Treasury bonds with 10-year term
is 1.571%, up 4 basis points.
30-year treasury bonds
at 2,276%, up 6.6 basis points for the day.
The 2-year Treasury note was at 0.161%, compared with 0.15% on Thursday at 3pm Eastern time.
During the week, 10-year Treasury yields fell 9.3 basis points, 30-year notes 6.4 basis points, while 2-year notes saw zero weekly gains, Four basic points, according to FactSet data.
What drives the fixed income market?
Treasury yields jumped early Friday after 10-year government debt yields hit their lowest in about a month, partly due to the President. Biden’s announcement of retaliation measures on Thursday against Russia on election interference, the SolarWinds cyber attack.
The buying of bonds pushed yields lower, experts say, but traders argue that investor’s skipping of positions, with some bets on rising yields, has helped exacerbate further slippage in bond yields, experts said.
The recent downward moves on yields come even as U.S. economic data has mostly gotten stronger, pointing to the eventual, consequential rise in inflation as a result of they cut back on instruments. fixed value.
On Friday, investors analyzed housing data ahead of a report on consumer sentiment at 10 a.m. Eastern Time.
US home prices started rising 19.4% monthly in March Following a sharp decline of 11.3% in February, the US Census Bureau and the US Department of Housing and Urban Development reported Friday. Meanwhile, construction permits rose 2.7% in March, after falling 8.8% in February.
What are the strategists saying?
“Overall, there is strong interest in the housing sector but at this stage of recovery the growth is old news long before it is announced. Furthermore, another strong data point is clearly all it takes for the Treasury to further rise, ”Ian Lyngen and Ben Jeffery, fixed income analysts at BMO Capital Markets, wrote in a note on Friday.
“Currencies were trading at a modest level before the first round of data this morning. The BMO analysts write.