Bond yields edged higher on Monday, though they didn’t come close to unwinding the big rally in government debt from weaker-than-expected economic data.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.56%, up 1.8 basis points. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.21%, up 2.4 basis points. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.36%, up 1.9 basis points.
What’s driving markets
On Friday, data released by the Institute for Supply Management showed deteriorating activity, as consumer sentiment slipped, triggering a 7 basis point decline in the 10-year Treasury and an even bigger yield decline in the 2-year note.
The market this week will be focused on Fed Chair Jerome Powell’s testimony to Congress as well as the nonfarm payrolls data on Friday.
“With seasonal adjustment and weather-related payback to deal with, we think the markets are likely to take the [nonfarm payrolls] number with a grain of salt absent a material surprise in either direction,” said strategists at BNP Paribas.
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