U.S. Treasury yields ticked higher in Monday as investors gauged the sustainability of last week’s bond market rally that took the 10-year Treasury rate briefly below 1.60%.
What are Treasurys doing?
The 30-year bond yield
gained 3.3 basis points to 2.293%.
Bond prices move inversely to yields.
What’s driving Treasurys?
Bonds gave up some of their bid at the start of the week, with the 10-year Treasury yield near 1.60%.
But Monday proved a quiet session for bond traders, with little economic data due for release. In addition, Federal Reserve officials are in a media blackout period before the central bank’s policy meeting on April 28.
After Monday’s session, long-term Treasury rates remain largely lower after last week when government debt gained in value and yields rose despite improving economic prospects that would normally weigh on bond prices.
The pandemic’s trajectory appeared to worsen even as vaccination rates have headed higher. The 7-day average daily COVID-19 case count in the U.S. has risen by 5% over the past two weeks to 67,308 on Sunday.
The Centers for Disease Control and Prevention said at least half of U.S. adults had received at least one dose of the vaccine.
What did market participants say?
“Even more than usual, the pandemic remains in the eye of the beholder, so it can’t yet return to drive broad financial markets,” said Jim Vogel, an interest-rate strategist at FHN Financial.