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U.S. Treasury yields were steady early Monday as bond traders mostly looked past the buoyant mood undergirding the rise of equities.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.634% was at 0.638%, versus 0.636% at the end of Friday. The 2-year note rate TMUBMUSD02Y, 0.145% ticked up to 0.149%, from 0.147% in the previous session, while the 30-year bond yield TMUBMUSD30Y, 1.344% fell 0.6 basis point to 1.347%. Bond prices move inversely to yields.
What’s driving Treasurys?
The upbeat sentiment in risk assets didn’t make for diminished appetite for haven assets like government paper amid uncertainty around the trajectory of the pandemic and Fed policy. Futures for the S&P 500 show the large-cap benchmark on track to open above the key 3,400 level, extending its remarkable rebound since its March trough.
The Federal Reserve will command the attention of Wall Street as central bankers speak at the virtual Jackson Hole symposium, where Fed Chairman Jerome Powell will announce the results of the Fed’s review of its monetary policy approach and goals.
Analysts expect the Fed to tweak its policy framework to allow for a sustained overshoot of its inflation target before raising interest rates.
Investors will see some second-tier economic data in the morning, which is unlikely to provide an impetus to trading. The Chicago Fed’s national activity index for July is due at 8:30 a.m. ET.
What did market participants’ say?
“The highlight of this week will be Jay Powell and the Fed’s annual economic symposium which will be a livestream this year. We expect the Fed to maintain a very dovish stance as it works through its multiyear policy review,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities.
