Yield on 10-year US Treasuries recovers to 1.60% as investors watch debt supply

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Yields on US Treasuries rose early Monday, starting the week on a bearish tilt as investors saw a flood of new debt issues that could affect bond trading. The yield on the 10-year BX Treasury: TMUBMUSD10Y rose again 3.2 basis points to 1.598%, while the yield on the 30-year BX: TMUBMUSD30Y rose 1.7 basis points to 2,268%. The 2-year BX: TMUBMUSD02Y rate rose 0.9 basis points to 0.166%.

What drives the Treasurys? Debt issuance will be in the spotlight as investors sink in $ 121 billion in new Treasuries of 2- and 5-year maturities later in the day. Before the new offering, distributors can offer higher returns to attract buyers and help the market eliminate inbound issuance. The trajectory of the pandemic is also attracting attention as coronavirus cases and deaths continue to decline in the US, even as the spread of the disease has worsened in some parts of the world, especially India. In economic data, US Durable Goods Orders are due at 8:30 AM ET, providing a snapshot of US investment during the recovery. Economists expect a 2.2% increase in March. Some investors will watch the Fed’s midweek meeting, but few expect big shakes from the meeting. What did market participants say? “The Fed has been able to convince the market that it is not in a position to start contemplating cutting, regardless of rate hikes, for, in its own words, ‘some time,'” said John Velis, Macro Strategy at BNY Mellon .