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10-year treasury dips on 1’st day of second quarter

U.S. Treasury yield continues its downward path as of Thursday, April 1st. The 10-year Treasury, which just recently recorded a 14 month high, dipped down from 1.679% to 1.674%. Yields move inversely proportional to prices, which means that the price for Treasury bonds are continuously increasing.

The 10-year Treasury yield set a record high last Tuesday session, which is the highest it had been since January of 2020. These major movements from the Treasury yields started after the speech of Fed Chief Powell and the FOMC. The speech indicated positive outlook regarding economic recovery which bolstered the position of bonds from below 1% up to the said record high in a span of a week or two. This made tech stocks take the brunt of the speech contents for several days.

It was only reversed after President Joe Biden’s speech was released about the new $2 trillion economic recovery package that the outlook of investors shifted. The new bill focuses on infrastructure, transportation, affordable housing and broadband.

As of Thursday, the data are as follows:

  • S. 3 Month Treasury gained 0.002 basis points and now at 0.02%
  • S. 1 Year Treasury lost 0.002 basis points and ended at 0.061%
  • S. 2 Year Treasury went up by 0.001 basis points and closed at 0.161%
  • S. 5 Year Treasury tripped by 0.004 basis points and at 0.903%
  • S. 10 Year Treasury slumped by 0.009 basis points ending with 1.67%
  • S. 30 Year Treasury dropped by 0.005 basis points closing at 2.335%

This being said, claims for jobless benefits, especially first timers, were off the expected numbers. More than 700,000 workers have filed unemployment, which is far off the 675,000 estimate from Dow Jones.

This made the release of March job reports this coming Friday more anticipated, as 630,000 jobs are being expected by economists to have been added in March. They also expect the unemployment rate to drop from 6.2% to 6% with this report release.

Amidst movement for Treasury yields, many investors are still worried about sudden inflation. Fed Chief Powell had already addressed this by saying that they will let central bank fan the flames of inflation if it can help achieve 100% rate of employment.

For now, browse and click more on Prime Bright Investment Limited to know more about what we can offer for your financial needs.

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