Trump indicators Covid Reduction Invoice
Government bond yields rose Monday after President Donald Trump signed a $ 900 billion Covid-19 bill.
The 10-year Treasury yield, moving against prices, rose 2 basis points to 0.954%. The interest rate on 30-year government bonds rose 4 basis points to 1.700%.
Trump prevented the government from closing late Sunday and extended unemployment benefits to millions of Americans. The signing came days after Trump proposed vetoing the legislation and calling for $ 2,000 in direct payments to Americans instead of $ 600.
“With the Expense Accounting Act, I think we will try again at this 1% level in 10 years, up 3 basis points today to 0.96%,” said Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group. said in a note. “The 30 years are back at 1.70% and I think it was 2% in early 2021.”
Government bond yields have risen on optimism about a second Covid business cycle deal, with the 10-year rate up more than 10 basis points this month.
The key interest rate hit a record low of 0.318% in March when a historic flight to safe bonds took place amid the depths of the coronavirus pandemic.