U.S. Treasury yields ended lower on Friday, capping a weekly and monthly drop as concerns over the economic blow to the global economy from the coronavirus bolstered government bond values.
What are Treasurys doing?
10-year Treasury bill yields TMUBMUSD10Y,
was down 0.4 basis points to 0.536%, around its lowest since March 9. The benchmark maturity fell 5.3 basis points this week and 11.7 basis points in July. Yields fall as Treasury prices rise.
The rate of the 2-year notes TMUBMUSD02Y,
edged down from a basis point to an all-time low of 0.111%, contributing to a 4 basis point decline on the week and month. The 30-year bond yield TMUBMUSD30Y,
was at 1.198 %%, leaving its weekly decline of 4 basis points and monthly decline of 21.2 basis points intact.
What motivates treasures?
Treasury yields were initially higher after Amazon, Facebook, Apple and Google reported stronger results than Wall Street expected, halting overnight gains on government bonds. The rise in the stock market was driven by the relentless rise of a handful of shares of tech companies, raising fears that the stock market could pull away from the wider malaise plaguing the US and global economy due to of the COVID-19 pandemic.
But lingering concerns over the coronavirus have kept yields around their lowest levels on record, with shorter maturities already at historically low levels as the Federal Reserve pledges to keep rates close to zero until then. for the economy to recover.
In testimony to Congress, Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said the virus was unlikely to go away because it was highly contagious, but health officials public and policy makers could work together to reduce it to “low levels.”
As expected, investors saw murderous economic data in the eurozone, with the 19-member currency bloc reporting its sharpest contraction on record in the second quarter, falling 12%.
In the United States, consumer spending rose 5.6% in June, marking its second consecutive monthly increase. Personal income also fell 1.1% in June.
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What motivates treasures?
“Yields have fallen as the employment situation remains worrying. It’s also clear that the virus never really went away, ”said Gregory Faranello, head of US rates at AmeriVet Securities, in an interview.
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