AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'. Watch the full video here

Less Ads, More Data, More Tools Register for FREE

TREASURIES-Longer-term yields rise with stock gains

Fri, 31st Jul 2020 15:12

By Ross Kerber
July 31 (Reuters) - Longer-term U.S. Treasury yields rose on
Friday as traders moved into stocks, but caution held back
shorter-term rates and steepened the yield curve.
The benchmark 10-year yield was up 2.1 basis
points at 0.5625% in morning trading.
The gap between yields on two- and 10-year Treasury notes,
seen as an indicator of economic expectations, was
at 44 basis points, about a basis point above Thursday's close
and well above the 40 basis point level it touched early Friday
The risk-on movement came as stock indexes opened higher
based on strong earnings from top technology
But the two-year U.S. Treasury yield, which
typically moves in step with interest rate expectations, was
almost unchanged at 0.1191% and remained close to its all-time
low of 0.105% reached on May 8.
The economy as a whole is unlikely to improve until public
health issues stemming from the COVID-19 pandemic are resolved,
said Raymond James market strategist Ellis Phifer. Early signs
of an economic comeback proved premature as virus cases have
continued rise and kept people at home.
"That's bad for the economy since we're consumer driven,"
Phifer said.
The Commerce Department said on Friday that consumer
spending, which accounts for more than two-thirds of U.S.
economic activity, rose 5.6% last month after a record 8.5% jump
in May as more businesses reopened.
The data was included in Thursday's advance gross domestic
product report for the second quarter, which showed the economy
shrinking at a record 32.9% annualized rate as consumer spending
tanked at a historic 34.6% pace.
The United States leads the world in COVID-related
fatalities with more than 150,000 in five months.
In Washington negotiations over another coronavirus relief
bill continued and the No. 2 Democrat in the U.S. House of
Representatives said a federal jobless benefit was set to expire
on Friday with no sign of a deal.

July 31 Friday 9:53AM New York / 1353 GMT

Price Current Net
Yield % Change
Three-month bills 0.0925 0.0938 -0.002
Six-month bills 0.1 0.1017 -0.002
Two-year note 100-3/256 0.1191 -0.002
DThree-year note 99-250/256 0.133 -0.003
Five-year note 100-16/256 0.2374 0.007
Seven-year note 99-188/256 0.4136 0.013
10-year note 100-152/256 0.5625 0.021
20-year bond 102-52/256 1.0019 0.028
30-year bond 100-124/256 1.2305 0.033

Last (bps) Net
U.S. 2-year dollar swap 7.00 0.50
U.S. 3-year dollar swap 6.00 0.50
U.S. 5-year dollar swap 4.00 0.25
U.S. 10-year dollar swap -1.00 0.00
U.S. 30-year dollar swap -42.75 -1.00

(Reporting by Ross Kerber in Boston
Editing by Nick Zieminski)

More News

UK officials admit some markets to be subject to duties under post-Brexit deal terms - FT

May 9 (Reuters) - Companies in freeports in Britain will not get to enjoy the full benefits of the new tax-efficient zones if they are exporting to certain countries including Canada, Norway, Switzerland and Singapore, the Financial Times reported...

9 May 21 23:09

WRAPUP 1-Soccer-Man Utd delay Man City's party, West Brom relegated

* Man Utd come from behind to beat Villa* Man City title celebrations delayed until at least Tuesday* Allardyce suffers first Premier League relegation as West Brom lose* Calvert-Lewin dents West Ham's Champions League hopesBy Martyn HermanMay 9 (Reu...

9 May 21 22:57

England to ease COVID restrictions further on May 17

LONDON, May 9 (Reuters) - England will press ahead with plans to ease COVID-19 restrictions further on May 17, including allowing people to meet indoors, thanks to favourable data on infections and vaccines, the government said on Sunday.The count...

9 May 21 22:30

Soccer-Premier League talking points

May 9 (Reuters) - Talking Points from the Premier League weekend:HAVE CHELSEA GAINED A PSYCHOLOGICAL EDGEChelsea's 2-1 victory over Manchester City made sure City's title celebrations remained on hold but perhaps more importantly sent out a message t...

9 May 21 22:16

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.