Treasury yields rise as investors weigh economic outlook

On Monday, U.S. Treasury yields saw a slight increase as investors evaluated the prospects for the American economy while earnings season continued.

The 10-year Treasury yield rose 7 basis points to 3.595%, while the 2-year Treasury yield jumped over 9 basis points to 4.198%.

It’s worth noting that yields and prices have an inverse relationship, and each basis point is equivalent to 0.01%, CNBC reported.

The rise in yields coincided with the ongoing earnings season, including reports from Charles Schwab and several other financial sector companies.

This sector has been under pressure in recent weeks due to the collapse of Silicon Valley Bank, which sparked a liquidity crisis.

In other news, the latest New York area manufacturing report for April indicated a robust economy, which raised concerns that the Federal Reserve might need to take further action.

Keith Lerner, co-chief investment officer at Truist, noted that the bond market is responding to slightly improved economic data, which suggests that the Fed may still consider raising interest rates.

Written by staff