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Bond report: 10-year authorities bond yields rise in direction of 1.50% as yields broaden earnings

U.S. Treasury bond yields rose Tuesday, continuing a surge that has been underway since late September when the Federal Reserve signaled it could cut its monthly bond purchases through late 2021.

What returns do

Interest rate on 10 year treasury bills
TMUBMUSD10Y,
1.501%
is 1.499% versus 1.481% at 3:00 p.m. Eastern Time on Monday.

The 2-year government bond pays off
TMUBMUSD02Y,
0.285%
0.282% compared to 0.278% a day ago.

The 30-year government bond
TMUBMUSD30Y,
2.059%
was 2.061%, down from 2.048% on Monday.

What is driving the market?

The rise in yields has been attributed in part to fears that the Federal Reserve may be forced to accelerate the $ 120 billion cut in monthly purchases and raise interest rates as inflation has risen faster than forecast.

Labor market health is likely to be the main driver behind the national debt this week, with ADP's private sector data for September to be released on Wednesday and the US Department of Labor's monthly report on Friday.

Ahead of this labor market data, investors will be on the lookout for a report on the international trade in goods and services due Tuesday at 8:30 a.m. ET.

A final reading of IHS Markit's composite purchasing managers' index is due at 9:45 a.m. ET, followed by a services sector reading from the Institute for Supply Management at 10 a.m.

What analysts are saying

“Stock volatility remains high in the first week of October, what
bid in treasury prices, ”wrote Tom di Galoma, Managing Director at Seaport Global Holdings, in a daily note. Next week's Treasury offering on Tuesday and Wednesday after the Columbus Day holiday should allow yields to rise well into the end of the fourth quarter. All eyes on the US jobs data on Friday, ”he wrote.

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