CASH-US yields climb as rally comes to a halt after 8-day streak


(Price update, add reverse repo data) By Chuck Mikolajczak NEW YORK, July 9 (Reuters) – US Treasury yields surged on Friday, ending a part-fueled eight-day price rally by concerns that the economic recovery had already peaked and was showing signs of slowing down amid rising coronavirus infections in many places around the world. Recent data in the labor market and the service sector have made investors reflect that the US economy may not strengthen as quickly as initially expected and may show signs of emerging underlying weakness, while that the Delta variant of COVID-19 has heightened fears that economies around the world may need to reimpose restrictions. Pfizer and its partner BioNTech plan to ask U.S. and European regulators within weeks to authorize a booster dose of their COVID-19 vaccine, based on evidence of an increased risk of infection six months after the inoculation and spread of the highly contagious Delta variant. “As we go through the summer here, you start to worry that in the fall we will shut down again, it’s really kind of a worry,” said Tom di Galoma, Managing Director of Seaport Global Holdings in New York. “It’s kind of pushed back to where we were supposed to have this great pandemic escape, that’s one of the big issues.” The yield on 10-year Treasuries rose 7 basis points to 1.358% after falling to 1.25% on Thursday, the lowest level since February 16. The eight days of falling yield at 10 years marked the longest streak of its kind. from a nine-session drop that ended on March 3, 2020, as the COVID-19 pandemic in the United States gathered speed. Analysts said recent volatility in oil markets, a lack of supply with a shortage of long-term government auctions this week and a largely short market also contributed to lower yields. Analysts said next week’s US Treasury auctions could help supply and boost yields, with $ 38 billion in 10-year bonds offered on Monday, followed by $ 24 billion in 30-year bonds. years Tuesday. Low immunization rates in some parts of the world pose a threat to the United States and global growth, the Federal Reserve’s Mary Daly told the Financial Times, adding that the U.S. central bank is fully committed to eliminating shortages of jobs. The amount of liquidity entering the Fed’s overnight repo transaction edged down to $ 780.6 billion on Friday from $ 793.4 billion on Thursday, and was well below the record high of $ 992 billion. last Wednesday’s dollars. A closely watched portion of the U.S. Treasury yield curve that measures the spread between two-year and ten-year Treasury bill yields, seen as an indicator of economic expectations, was at 114.1 basis points after falling flattened to 104.2 a day earlier, the narrowest since Feb 12. It flattened about 5 basis points over the week. Even with Friday’s rise, the benchmark 10-year yield is down more than 7 basis points on the week and poised for its biggest two-week drop in about 13 months. The 30-year Treasury bond yield rose 7.5 basis points to 1.985% after falling to 1.856% on Thursday, marking its lowest level since February 2. July 9 Friday 2:25 p.m. New York / 1825 GMT US price T BONDS SEP1 162-18 / 32 -1-12 / 32 10YR TNotes SEP1 133-108 / 256 -0-120 / 2 56 Price Current net yield% Change (bp) Bons at three months 0.0525 0.0532 0.000 Notes at six months 0.0525 0.0532 0.002 Two Note at – years 99-211 / 256 0.2146 0.023 Note at 3 years 99-150 / 256 0.3925 0.036 Note at – years 99-211 / 256 0.2146 0.023 Note at 3 years 99-150 / 256 0.3925 0.036 Note at 5-year 100-112 / 256 0.785 0.048 7-year note 100-236 / 256 1.1121 0.058 10-year note 102-116 / 256 1.3578 0.070 30-year bond 108-192 / 256 1.985 0.075 SPREADS SWAP DOLLAR Last ( bp) Net change (bp) 2-year US dollar swap 8.25 0.25 3-year US dollar swap spread 12.25 0.25 5-year US dollar spread 8.50 0.50 10-year US dollar swap spread -0.50 spread to 0.75 30-year US dollar swap -27.75 spread to 1.50 (Report by Chuck Mikolajczak; edited by Kirsten Donovan and Leslie Adler)


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