The U.S. Treasury’s ten-year yield reached 1.6% on Monday morning, after the Senate passed a $ 1.9 trillion economic stimulus and coronavirus stimulus bill on Saturday.
The yield on the 10-year Treasury Note rose to 1.606% at 3:30 am ET. The yield on the 30-year Treasury bond rose to 2.311%. Yields are reversed to prices.
Senators passed the stimulus bill through budget reconciliation, a process that required no Republican support, but every Democratic vote.
The Democracy House aims to pass the bill on Tuesday and send it to President Joe Biden to sign before March 14 to renew unemployment assistance programs.
Recently, treasury yields have risen rapidly amid expectations of the pandemic’s economic recovery and concerns about rising inflation.
Ambrose Crofton, JPMorgan Asset Management’s global market strategist, noted in a comment Friday that this recent rise in yields has caused “some indigestion in equity markets”.
However, Crofton said investors should be comfortable with Federal Reserve Chairman Jerome Powell’s comments last week stating that “if markets get messy, steps will be taken to maintain financial conditions. favorable and keep the economy on the path to full employment. “
Powell said at a Wall Street Journal conference last week that he was “very attentive” to the lessons of runaway inflation in the 1960s and 1970s, but believes the current situation is different.
Auctions for $ 54 billion instead of 13 weeks and $ 51 billion in 26 weeks will be held on Monday.
– CNBC’s Jacob Pramuk contributed to this report.