US Treasury yield changes trend and rises

US Treasury yield changes trend and rises

Stock image. US Department of the Treasury in Washington, DC

© Reuters/Andrew Kelly
File image. US Department of the Treasury in Washington, DC

Leek Karen Pierog

CHICAGO, Oct 15 (Reuters) – The yield on U.S. Treasuries rose on Thursday, reversing trend after investors fled risk at the start of the wheel amid an unexpected spike in jobless claims and uncertainty about another round of fiscal stimulus to boost the economy.

* In the afternoon operations, the return of the 10-year benchmark notes operated at 0.7306%.

* Guy LeBas, chief fixed income strategist at Janney Capital Management in Philadelphia, said the initial risk tone of the session changed as Wall Street cut losses. “You see the pretty substantial reversal after a big morning rally in Treasuries,” he noted.

* Added to economic concerns was a report from the Labor Department that indicated that initial applications for state unemployment benefits last week stood at 898,000, higher than expected.

* Meanwhile, the President of the United States, Donald Trump, said he is willing to raise his offer of 1.8 trillion dollars in a package of aid for COVID-19 to reach an agreement with the Democrats, statements that will worry probably his Republican co-religionists in the Senate.

* The two-year bond yield, which tends to move in line with interest rate expectations, was 0.137% versus 0.139% at the close of the previous round.

* A closely watched part of the bond yield curve, which measures the gap between the return on two-year and 10-year notes, seen as an indicator of economic expectations, was trading at 57.20 below Wednesday’s close.

(Edited in Spanish by Carlos Serrano and Javier Leira)


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