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10-Year Treasuries hit one-month high as 2-year notes surge to highest level since March 2020

Yields on US government debt rose on Tuesday, pushing the benchmark 10-year Treasury note to its highest level since late October, ahead of Thanksgiving on Thursday.

Treasury yields rise rapidly as investors continue to look at President Joe Biden’s account Jerome Powell’s Monday nominations for a second, four-year term as Chairman of the Federal Reserve, with growing expectations that he will push for higher interest rates.

What is the yield doing?
  • 10-year Treasury bond
    TMUBMUSD10Y,
    1.650%

    yields are at 1.657 percent, which would put the benchmark bond close to its highest level since October 22, compared with 1.625 percent at 3 p.m. ET on Monday.

  • 2-year Treasury bond
    TMUBMUSD02Y,
    0.632%

    interest rates were at 0.652%, compared with 0.580% on Monday and added to their highest gain since around March 2020.

  • 30-year Treasury bond
    TMUBMUSD30Y,
    2.002%

    yield 2.005%, up from 1.97% Monday afternoon.

What drives the market?

Treasury yields are moving higher on bets that Powell has a new mandate to accelerate the pace of the Fed’s monthly asset purchases cut, aimed at curbing a rise in inflation and ultimately raising interest rates. .

Yields on short-term debt, which are most sensitive to expectations of interest rate changes, have risen more rapidly. Yields on the 2-year Treasury note are hanging at their highest levels since March 2020.

But yields rose across the board, with Monday marking the strongest yield gains on 2-year, 10-year and 30-year government debt since Nov. 10, according to Dow Jones Market Data. .

The bond sell-off was also increased by seasonally lower bond volumes, analysts said, noting that the days leading up to US Thanksgiving tend to be relatively thinly traded.

Looking ahead, investors are keeping an eye on the IHS Market US flash composite purchasing managers index for both the manufacturing and services sectors at 9:45 a.m. ET.

At the end of the session, there was an auction of $24 billion in 2-year floating-rate Treasury bonds and a sale of $59 billion over 7 years.
TMUBMUSD07Y,
1.580%

Note.

What Strategists Are Saying

“Monday’s sell-off continued into the night, mainly because nothing could stop it before the US holiday season. Trading volumes fell rapidly after a triple hit from hawkish EU central bank negotiations, a major rise in the real exchange rate following Mr. Powell’s re-appointment and two weak Treasury auctions. least. Jim Vogel, executive vice president at FHN Financial, writes: Jim Vogel, executive vice president at FHN Financial, said:

https://www.marketwatch.com/story/10-year-treasury-climbs-to-highest-yield-in-a-month-as-2-year-adds-to-highest-since-march-of-2020-11637673687?rss=1&siteid=rss 10-Year Treasuries hit one-month high as 2-year notes surge to highest level since March 2020

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