Ten-year U.S. Treasury yields rose 1.6 percent Monday morning after the Senate approved a $ 1.9 billion coronavirus economic relief and stimulus bill on Saturday.
The yield on the 10-year treasury note climbed to 1.606% at 03:30 ET. The return on the 30-year treasury bond rose to 2.311%. Returns move inversely to prices.
Senators passed the stimulus bill through budget reconciliation, a process that requires no Republican support but every Democratic vote.
The Democratic House plans to pass the bill Tuesday, sending it to President Joe Biden for his signature before a March 14 deadline to renew unemployment benefits.
Treasury yields have risen sharply recently recently amid expectations of the economic recovery from the pandemic and concerns about a rise in inflation.
Ambrose Crofton, world market strategist at JPMorgan Asset Management, said in a statement on Friday that the recent rise in returns has caused some indigestion in the stock markets.
However, Crofton said investors should take comfort in remarks made by Federal Reserve Chairman Jerome Powell last week, suggesting that “should the market go awry, action will be taken to maintain favorable financial conditions and the economy.” on the road to full employment. “
Powell told a Wall Street Journal conference last week that he was “very aware of the lessons of runaway inflation in the 1960s and ’70s, but believes the current situation is different.
Auctions are being held Monday for $ 54 billion in 13-week accounts and $ 51 billion in 26-week accounts.
– Jacob Pramuk of OilGasJobz contributed to this report.