Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

U.S. Bonds Yields Remain Near Highest Level Since June -- Update

10/23/2020 | 04:44pm EDT

By Orla McCaffrey

U.S. government bond yields posted their largest weekly gain since August, lifted by signs of economic recovery and the hopes for economic stimulus before or after the presidential election.

The yield on the benchmark 10-year Treasury note reached as high as 0.87% in early trading Friday before settling at 0.84%, according to Tradeweb -- down slightly from 0.847% on Thursday. It had previously climbed for six straight sessions, reaching its highest level since early June.

A critical reference point for borrowing costs on everything from mortgages to student loans, the 10-year yield had spent months in a relatively tight range before its recent uptick. While many worry the prospect of lawmakers reaching a stimulus deal before the election remains dim, signs of progress in the talks helped push yields above 0.8% for the first time since June earlier this week.

Investors are increasingly betting Democrats will end up with control of Congress and the White House after the election, boosting the chances of further fiscal stimulus and pressuring bond prices, said Priya Misra, head of global rates research at TD Securities.

"If we keep pricing in a Biden win, it's all about how much supply is coming down the pike," Ms. Misra said. "It's just a tug of war between supply and demand. The supply side is winning out right now."

Yields continued to rise Thursday after the Labor Department said the number of Americans applying for unemployment benefits was the lowest since the economic pain of the recession started to be felt in March. On Friday, they pared an initial climb, falling after a measure of manufacturing activity indicated that the U.S. economy continues to grow, albeit at a slower pace.

The rise in yields could be short-lived. When the 10-year yield last rose above 0.8% in June, it stayed there for just a few sessions, before being dragged down by mounting coronavirus cases and the Federal Reserve's announcement that it had no plans to raise short-term interest rates until the end of 2022.

Still, some analysts pointed to the growing gap between yields on five-year and 30-year Treasurys as a sign that investors expect growth and inflation to increase over the longer term, while government spending adds to the supply of debt.

Write to Orla McCaffrey at orla.mccaffrey@wsj.com

(END) Dow Jones Newswires

10-23-20 1643ET

Latest news "Economy & Forex"
02:20pChina's Full Truck Alliance valued at over $24 billion in strong NYSE debut
RE
02:20pNasdaq hits record high as Big Tech roars back
RE
02:20pFacebook expands Shops to WhatsApp, Marketplace in commerce updates
RE
02:16pTwitter opens applications to test new content subscription features
RE
02:15pNasdaq hits record high as Big Tech roars back
RE
02:15pEyewear retailer Warby Parker files confidentially for U.S. listing
RE
02:10pExtreme weather to push property insurance higher -Hippo CEO
RE
02:04pLabor, green groups urge Biden to reject any 'watered-down' infrastructure deal
RE
02:00pWorld Bank commits to annual reports on climate action plan
RE
01:59pRecord-high U.S. house prices, tight supply weigh on sales
RE
Latest news "Economy & Forex"