10 Year Treasury Yield Near 5 Month High

Treasurys remained under pressure Thursday, pushing up yields, after data showed a small drop in orders for durable goods in September and a drop in first-time claims for jobless benefits.

The yield on the 10-year Treasury note TMUBMUSD10Y, +3.03%  was up 2.8 basis points at 1.818%, according to Tradeweb, trading near levels last seen in early June. The yield curve—the differential between short- and longer-dated maturities—continued to steepen, with the two-year U.S. Treasury note TMUBMUSD02Y, +2.29%  up 0.4 basis point at 0.876%.

The 30-year Treasury bond yield TMUBMUSD30Y, +2.71% rose 3 basis points to 2.567%. Yields and debt prices move in opposite directions.

Yields in the U.S. and elsewhere have been rising on ideas that as the Federal Reserve moves toward further tightening, other major central banks are signaling they are prepared to at least slow the pace of extraordinary stimulus.

There is a “tentative shift towards relative monetary tightening under way, which would prima facie point to higher bond yields and lower equities,” said Michael Every, head of financial markets research, Asia-Pacific, at Rabobank.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza