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.