The US Treasury yield for ten years remained higher than the 1.1% point on Monday morning, after President-elect Joe Biden promised further economic stimulus on Friday that would be “in the trillions of dollars”.
The yield on the standard 10-year treasury note rose to 1.103% at 07:12 ET, while the yield on the 30-year treasury bond climbed to 1.856%. Yields move inversely to prices.
Treasury yields barely moved Monday as traders waited for more details on Biden’s stimulus plan, which will follow in a formal announcement on Thursday, six days before he is expected to take office.
The need for further stimulation is underscored by the U.S. jobs in December that appeared Friday. It showed that non-farming salaries fell by 140,000 last month, against an expected rise of 50,000.
“The loss of momentum in the labor market is clear, and those who previously worked in retail, restaurants, entertainment, leisure and hospitality, as well as public sector employees in state and local governments, paid the price,” Joe said. Brusuelas written. chief economist at RSM.
“The main policy implication of the employment report is very clear: the next round of fiscal aid must address the hole in state and local budgets blown open by the loss of revenue, which resulted in 1.31 million jobs last year. Brusuelas added.
However, Tom Essaye, founder of The Sevens Report, noted that “with all this current and expected stimulus, the risks of a disorderly acceleration in bond yields and inflation are rising.”
‘If this is the beginning of a sustainable movement that is higher in inflation, then discussions about tapering [quantitative easing] can happen much sooner than markets think, ‘Essaye said.
Raphael Bostic, president of the Federal Reserve Bank of Atlanta, will hold ET at 12 p.m.
CNBC’s Yun Li contributed to this report.