Treasury yields mixed prior to unemployed billing data

Every Thursday morning, US Treasury yields were mixed prior to the release of weekly unemployment claims data.

Benchmark yield 10-year government bond It dropped to 1.653% at 5 am EST.Yield 30-year government bond It rose to 2.337%. Yield is inversely proportional to price.

Investors may be pondering the latest update of the Ministry of Labor regarding unemployment insurance claims scheduled for 8:30 EST in light of last week. Blockbuster salary report.. Economists polled by Dow Jones expect a total of 694,000 first-time unemployment claims for the week ending April 3.

Yields have recently risen over inflation concerns amid the economic recovery from the coronavirus pandemic. However, the Federal Reserve Board of Governors said at a policy meeting in March that it would raise inflation above its long-term target of 2% if it could help achieve full employment.

Minutes from Fed March MeetingAnnounced Wednesday confirmed that it would maintain its mitigation policy until economic “outcomes” were achieved.

Sarah Hewin, head of research at Standard Chartered Bank in Europe and the United States, said CNBC’s “Squaw box europe“Thursday, the Fed seemed to take into account some of the improvements seen in economic data since the last meeting.

“So I think they’re largely considering a very large number of payrolls in the coming months,” she said, but the uncertainty is “how long the current strength of the economy will last.” He added that it was about “ka”.

But Hewin A study published by the Federal Reserve Bank of New York Yesterday, he emphasized that many of the recent stimuli are being used for savings and debt repayment rather than being used. She suggested that it would be “wise” for the Fed to take a “careful approach at this stage” to policy.

“There is still a large output gap, and from the Fed’s point of view, we need to close the output gap in order for inflation to return to its target and, in fact, remain above target for some time,” she added. Added.

Federal Reserve Board Chair Jerome Powell will speak Thursday at 12:00 EST at the International Monetary Fund’s debate on the world economy.

The auction will take place on Thursday with a $ 40 billion four-week invoice and a $ 40 billion eight-week invoice.

— — Thomas Franck of CNBC contributed to this report.

Treasury yields mixed prior to unemployed billing data

Source link Treasury yields mixed prior to unemployed billing data

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