Yields on US Treasuries fell in trading early Thursday, kicking off the new quarter as investors watched a host of economic data that could illuminate the health of the labor market and manufacturing industry. The yield on the 10-year Treasury note TMUBMUSD10Y, 1,705% fell 1,710%, from 1.749% at the end of Wednesday, around its highest level since January 2020. The yield on the 2-year note TMUBMUSD02Y, 0.164% it was 0.164%, with an increase of 0.6 point. The yield on the TMUBMUSD30Y 30-year bond, 2,370% fell 5.9 basis points to 2,369%.
What drives the Treasurys? On the US job market front, initial claims for unemployment benefits for the seven-day period ending March 27 are due at 8:30 am ET. The data could continue to show the job market recovery as fiscal stimulus funds flow through homes and businesses and COVID-19 vaccines are injected into the arms of Americans. The Institute for Supply Management Manufacturing Index is due at 10 a.m., and analysts surveyed by MarketWatch are forecasting a reading of 61.7. Any number above 50 marks an expansion of economic activity. Investors will analyze the details of Biden‘s infrastructure plan and assess the likelihood of the bills passing through Congress. See: Biden Launches $ 2.3 Trillion Infrastructure Plan: ‘It‘s Bold, Yes, And We Can Do It’ The combination of upbeat economic data, fiscal stimulus, and positive vaccine developments have managed to overshadow the growing concerns the world will have to face. another resurgence of coronavirus cases. Senior US public health officials warned earlier this week that if Americans had to work hard to prevent a fourth increase in the deadly disease, what did market participants say? US government bond securities “have ignored the CDC’s warnings of a fourth wave pandemic here and extended lockdowns in Europe. With three themes driving the first quarter (spending, fiscal stimulus and vaccines), traders are willing to ignore the stagnations in a story, ”said Jim Vogel, interest rate strategist at FHN Financial.