U.S. Treasury yields fell on Thursday, even after a better-than-expected series of data showed the strength of American consumers who are benefiting from direct payments to their households. Congress and vaccine rollout are accelerating.
Treasures are doing?
The yield on 10-year treasury bonds
down 10.6 basis points to 1.531%, the lowest in four weeks and marks the biggest daily decline since early November. 2-year bond yields
fell 0.8 basis points to 0.15%, while the yield on the 30-year term
down 11.5 basis points to 2,210%, marking the largest daily decline since mid-February.
What is driving the Treasures?
Old treasures look at the accelerated data improvement process, highlighting the growth engine behind the US economy. Bond traders may have lowered the price of this news, analysts say, as many have expected an improvement in economic indicators during the spring.
The highlight of Thursday’s economic data is Retail figures for March, up 9.8% to mark the second largest monthly record gain.
While, initial unemployment claims fell to a pandemic low of 576,000 seasonally adjusted from 769,000 last week.
Investors also looked at some key data from factories in the US. Iindustrial production increased by 1.4% in March, while New York and Philadelphia factory indexes jumped in April.
What did the market participants say?
Tom Graff, head of fixed income at Brown Advisory, said: “I think the market has run the Fed too much and is too confident that inflation will come and then, at some point, the Fed will react, ”said Tom Graff, head of fixed income at Brown Advisory.