U.S. Treasury yields rose in early Monday trade on hopes that lawmakers in Washington could reach a deal on a new fiscal stimulus bill to reinvigorate the U.S. economy, easing demand for safe-haven assets.
What are Treasurys doing?
The 10-year Treasury note yield
rose 2 basis points to 0.714%, while the 2-year note rate
held at 0.133%. The 30-year bond yield
climbed 3.8 basis points to 1.518%. Bond prices move inversely to yields.
What’s driving Treasurys?
Investors cited hopes that President Donald Trump may leave the hospital soon and push for a fiscal stimulus package. House Speaker Nancy Pelosi said Congress was making progress towards passing another round of spending designed to shore up the economy.
Stock-market futures were indicating a higher open for Wall Street as appetite for assets perceived as safe waned.
A breakthrough on new government spending could help accelerate economic growth, which analysts worry is at the verge of stalling as unemployment benefits go away.
There is some economic data on the docket. The Institute for Supply Management is due to release its services index for September at 10 a.m. ET.
What did market participants’ say?
“Seemingly supporting the upbeat tone is an announcement by Trump’s medical team that he is due to be discharged as soon as today and perhaps ongoing optimism on the stimulus front,” said analysts at Rabobank.