[ad_1]
The 10-year U.S. Treasury yield hit 1.6% on Monday morning, after the Senate passed a $ 1.9 trillion coronavirus economic relief and stimulus bill on Saturday.
The yield on the benchmark 10-year Treasury bill climbed to 1.606% at 3:30 a.m. ET. The yield on the 30-year Treasury bill rose to 2.311%. Yields move inversely with prices.
Senators passed the stimulus bill through budget reconciliation, a process that required no Republican support but every Democratic vote.
The Democratic-led House aims to pass the bill on Tuesday and send it to President Joe Biden for signature before the March 14 deadline to renew unemployment assistance programs.
T-bill yields have risen rapidly recently amid anticipation of an economic recovery from the pandemic and concerns about rising inflation.
Ambrose Crofton, global market strategist at JPMorgan Asset Management, noted in a comment on Friday that this recent surge in yields has caused “some indigestion in the stock markets.”
However, Crofton said investors should take solace in comments from Federal Reserve Chairman Jerome Powell last week that “if the markets get messy, action will be taken to keep financial conditions favorable and keep the economy in good shape. the road to full employment “.
Powell told a Wall Street Journal conference last week that he was “keenly aware” of the lessons learned from soaring inflation in the ’60s and’ 70s, but believes the current situation is different.
The auctions will take place on Monday for $ 54 billion in 13-week bills and $ 51 billion in 26-week bills.
– Jacob Pramuk of CNBC contributed to this report.
[ad_2]
Source link