U.S. Treasury revenue has rebounded to begin the week on Monday, after a few economic reports provided a mixed picture of the economy’s health.
What do Treasurys do?
The 10-year Treasury note yields TMUBMUSD10Y,
fell 2.3 basis points to 0.655%. Last week, the moderation period on Thursday hit an eight-week high.
The 2-year note-taking tariff TMUBMUSD02Y,
was not much changed at 0.145%, after seeing a rise of 2 basis points last week, while the 30-year bond yield TMUBMUSD30Y,
retreated 2.6 basis points to 1.416%.
All three benchmarks recorded their largest weekly revenue climb since June 5 last week.
What drives Treasurys?
Market participants were able to buy government bonds again on Monday after the three main benchmarks for debt had seen their biggest gains in more than two months. The moves for Treasurys are coming despite a slight rise for equity benchmarks to start the week as investors earn a few economic reports and view a market change on the verge of a record high.
A reading on business conditions in the New York area, the Empire State Index, fell 13.5 points to 3.7 in August, indicating a slower growth rate, the regional Fed bank said Monday. Economists had expected a reading of 17, according to a survey by Econoday. The index had risen in July after being on negative ground since the pandemic began.
Apart from that, a reading of confidence from the home builder was much stronger than expected, and came out a little earlier than expected. Building Builder Confidence in the New Household Market jumped six points in August to 78 on the National Association of Home Builders / Wells Fargo Housing Market Index, with the reading at the highest level on record for the report. Builder sentiment dropped to 30 in April. A reading above 50 is considered optimistic.
What did ‘market partners’ say?
“With the better housing numbers and the weaker NY number, Treasury yields are at the lowest of the day with the 10 [year] yield at .68% and 30-year interest rates at 1.41 -42%, “wrote Peter Boockvar, chief investor, at Bleakley Advisory Group, in a note.
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