October 24, 2020

Treasury yields come off highs after jobless data beats estimates


U.S. government debt prices ticked higher Friday, after falling Thursday on the back of stronger weekly jobless data.

The yield on the benchmark 10-year Treasury note was lower at around 0.7012% in early trading, while the yield on the 30-year Treasury bond slipped to around 1.4135%. Bond yields fall as their prices rise.

The move follows jobs data which showed that the number of people claiming unemployment benefits was 963,000 last week. It’s the first time the figure has fallen below 1 million since March, when the coronavirus pandemic took hold in the U.S.

Treasury yields moved higher on the news.

Meanwhile, a Treasury bond sale Thursday met with weak demand, Reuters reported, which also pushed yields higher. The 10-year note hit its highest level since June 24, while the 30-year reached its highest level since July 7.

On Friday, investors will be monitoring any developments in the coronavirus crisis. White House coronavirus advisor Dr. Anthony Fauci said Thursday he “isn’t happy” with the way the pandemic is progressing in the U.S., referring to a “disturbing” uptick in the number of positive Covid-19 tests in some areas of the U.S.

Separately, Democrats and Republicans said they were no closer to a deal on the next round of coronavirus aid, indicating that the impasse could drag on for some time.

So far, more than 20,900,000 people around the world have contracted the coronavirus, according to data compiled by Johns Hopkins University, and over 755,000 deaths have been reported.

Retail sales figures are due Friday, along with industrial production and manufacturing production data. No major Treasury auctions are expected.



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