US Treasury yields traded higher early Thursday as investors became more positive about the economy.
What are treasuries doing?
The yield on 10 year treasury bills
rose 3.5 basis points to 1.656%, during the 2-year key rate
rose 0.6 basis points to 0.172%. The 30 year bond yield
added 2.8 basis points to 2.329%.
What drives Treasurys?
Federal Reserve Chairman Jerome Powell noted in the press conference after Wednesday's meeting that US economic data had strengthened, but reiterated his commitment to the central bank's cautious policies. Stock futures and yields rose in sync on Thursday.
See: Fed & # 39; s Powell "doesn't blink" and 5 other things we learned from his press conference
Powell's remarks come before the first official reading of US economic performance January through March. Analysts polled by MarketWatch forecast GDP growth of 6.5% for the first quarter when the data is released at 8:30 a.m. Eastern.
In other dates, weekly unemployment benefits are due at 8:30 AM, along with outstanding home sales for March at 10:00 AM.
President Joe Biden announced his plans to invest a total of $ 4 trillion in infrastructure and other priorities on Wednesday evening. However, it is unclear whether Biden will be able to get the bills through Congress, where a few dissenting votes from moderate Democrats could prevent a vote.
What did the market participants say?
"We believe higher rates should come as it becomes increasingly difficult to turn a blind eye to the improving backdrop, particularly in the US," said Padhraic Garvey, regional director of research for the Americas at ING. "With US President Biden's ambitious financial plans open and the Fed meeting behind us, we see fewer reasons for interest rates to buck the bullish trend."