Finance

Treasury yields are flat ahead of weekly jobless claims

treasury-yields-are-flat-ahead-of-weekly-jobless-claims

Government bond yields remained stable on Wednesday as investors waited for the latest labor market data.

The benchmark 10 year Treasury note yield rose to 0.921%, while the yield on the 30 year Treasury note was slightly higher at 1.655%. Bond yields move inversely with prices.

Investors will take another look at the job market when last week’s first jobless claims are released at 8:30 ET. Economists surveyed by Dow Jones expect 888,000 initial applications, which is roughly the same as last week.

President Donald Trump proposed on Tuesday not to sign a lengthy coronavirus aid package. He poured cold water on the $ 900 billion Covid relief bill that Congress passed earlier this week. Calling the measure an inappropriate “disgrace”, he called on lawmakers to make a number of changes, including larger direct payments to individuals and families.

The current package includes an increase in unemployment benefits, more small business loans, an additional $ 600 in direct payment, and funding to streamline the critical distribution of Covid-19 vaccines. However, Trump was dissatisfied with the $ 600 direct payments and requested an increase to $ 2,000.

Investors were also upset this week by a new strain of coronavirus first identified in the UK. The variant is believed to be up to 70% more transmissible than previous strains.

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