US 10-year Treasury yields rise for sixth consecutive day while teasing 11-month top
- US 10-year bond yields stay firmer around the March 2020 peak.
- American stimulus hopes propel the bulls despite US-Iran tension, mixed news at covid and vaccine fronts.
- A light calendar in Asia, thin news feeds keep the previous risk-on mood intact.
While portraying market optimism, US bond yields remain on the front foot during the early Monday. This could be well witnessed in the US 10-year Treasury yields that probe March 2020 top and marks a six-day winning streak.
Following US Senators’ push to the key aid package, comments from US Treasury Secretary Janet Yellen and President Joe Biden began the week on a firmer note. The mood got extra help after the Washington Post suggests a $3,000 per child benefit.
The bond yields refreshed multi-day high on Friday after US Democratic Party members managed to push President Biden’s $1.9 covid relief package through the Senate. The much-awaited stimulus proposal returns to Congress for further details.
Also favoring mood could be US President Biden’s push to open the schools in a safe way as well as the reduction in China’s coronavirus (COVID-19) numbers to zero for the first time in 2021.
Alternatively, US rejection to take back Iran sanctions and Tehran’s signals to go ahead with their arms embargo if Washington doesn’t return to the 2015 agreement challenge the sentiment. It should be noted that the second case of the virus in Melbourne challenges the authorities while the UK-EU tension also offers background music to the risks. Furthermore, a study, conveyed by the Financial Times (FT), showing Oxford-AstraZeneca vaccine’s inability to tame the South-African variant of the COVID-19 exert additional pressure on the risks.
Not only the US bond yields but the S&P 500 Futures and stocks in Asia-Pacific also favor the bulls amid a lack of major catalysts and light news feed.
Read: S&P 500 Futures refresh record top near 3,900 as US stimulus hopes favor risks amid quiet session
Moving on, traders will keep their eyes on US stimulus news and vaccine developments for fresh impulse.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
