US Treasury yields of ten years returned to near-high levels on Friday morning after President Joe Biden signed his stimulus package and announced that he would order countries to be eligible for the coronavirus vaccine by May 1. .
The yield on the 10-year treasury note increased 8 basis points at 6:45 ET to 1.61%. The return on the 30-year Treasury bond rose by 8 basis points to 2.36%. Yields move inversely to prices and 1 basis point equals 0.01%.
The ten years reached 1.62% earlier in the month before retiring.
Treasury revenues climbed after Biden signed the $ 1.9 billion coronavirus relief package on Thursday afternoon.
The plan will send direct payments of up to $ 1400 to most Americans. Direct deposits will start hitting Americans’ bank accounts this weekend, White House press secretary Jen Psaki said on Thursday.
In addition to announcing his plan to make Covid vaccines available to all adults 18 years and older, Biden said in his first speech to the country on Thursday night that Americans would hopefully be able to gather in small groups to celebrate the fourth of July. .
The yield was also higher after the number of weekly new claims for the unemployed came lower than expected on Thursday, with a total of 712,000 for the week ended March 6, below the estimate of 725,000.
Ten-year yields have risen sharply recently and have risen 1% since the end of January amid concerns over rising inflation. These concerns are exacerbated by fears that the US fiscal easing package, coupled with the reopening of the economy, could stimulate it too quickly and cause a rise in prices.
On Friday, February, the producer price index should be at 08:30 ET, while consumer sentiment from the University of Michigan and inflation expectations for March are expected to be released at 10 a.m. ET.
There are no auctions that will be held on Friday.
– OilGasJobz staff contributed to this report.