U.S. government bond yields inch up ahead of data, ECB press conference

These are the last days of small government and the Biden administration will make sure of that

U.S. Treasury yields were slightly higher on early Thursday’s trade as investors eyed a policy update from the European Central Bank and some upcoming U.S. economic data.

What are Treasurys doing?

The 10-year Treasury note rate

rose 1.1 basis points to 1.101%, while the 2-year note yield

held steady at 0.131%. The 30-year bond yield

was up 1.2 basis point to 1.854%.

What’s driving Treasurys?

The European Central Bank, as expected, made no changes to interest rates or its asset-buying program on Thursday. ECB President Christine Lagarde will now hold a press conference at 8:30 a.m. ET.

The 10-year German government bond yield

was up 1.3 basis points to negative 0.546%.

A slate of U.S. economic data in the morning will give a snapshot of the unemployment picture and housing market activity. Weekly jobless benefit claims and December housing starts are both due at 8:30 a.m. ET.

Investors have been sensitive to signs of a deteriorating labor market, after claims for unemployment benefits unexpectedly surged to 965,000 in the week ending in Jan. 9.

What did market participants say?

” Whether Lagarde remarks move the market is far from certain, but the point today is about conveying a message of cautious optimism without” sparking a strengthening of the euro and a steepening of European yield curves, said Kenneth Broux, an analyst at Société Générale.

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