Bond Report Archives | Email alerts

Feb. 7, 2022, 4:09 p.m. EST

Treasury yields hold steady near multiyear highs to start second week in February

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    U.S. 10 Year Treasury Note (TMUBMUSD10Y)
  • X
    U.S. 2 Year Treasury Note (TMUBMUSD02Y)
  • X
    U.S. 30 Year Treasury Bond (TMUBMUSD30Y)

or Cancel Already have a watchlist? Log In

By Vivien Lou Chen and Mark DeCambre

Yields for government debt retreated Monday, taking a breather after the 2- and 10-year rates hit their highest levels in years at the end of last week, following a better-than-expected jobs report.

Investors are looking ahead to important data on consumer prices on Thursday and auctions of government debt this week, which could help to provide further color around appetite for Treasurys.

What are yields doing?

  • The 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +1.03% yielded 1.915%, 1.5 basis points down from 1.930% on Friday at 3 p.m. Eastern Time, which marked the highest yield since Dec. 23, 2019.

  • The 2-year Treasury note /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y +1.00% yields 1.294%, receding 2.8 basis points lower from 1.322% at the end of last week, when the rate hit its highest level since Feb. 21, 2020, and had its biggest daily yield gain since March 10, 2020, according to Dow Jones Market Data.

  • The 30-year Treasury /zigman2/quotes/211347052/realtime BX:TMUBMUSD30Y +1.11% , known as the long bond, was yielding 2.217%, down 1.5 basis points from Friday afternoon.

What’s driving the market?

Yields edged lower to start the second week of February, even after employment data on Friday appeared to support an aggressive path monetary policy tightening by the Fed, which is focused on combating pricing pressures.

Friday’s data released by the Labor Department showed that the U.S. economy  added 467,000 jobs in January — well above economists’ expectations for an addition of just 150,000 jobs, and with some projecting losses for January due to the omicron variant surge.

Sign up for MarketWatch newsletters here

Treasury yields jumped after the data but pulled back somewhat on Monday.

Looking ahead, investors will watch for the January consumer-price index on Thursday for further evidence of inflation. A $50 billion auction of 3-year Treasury notes /zigman2/quotes/211347046/realtime BX:TMUBMUSD03M +4.93% is set for Tuesday, followed by a sale of $37 billion in 10-year debt on Wednesday and an auction of $23 billion in long bonds on Thursday, after inflation data will come into focus this week.

Investors, meanwhile, are watching developments between Russia and Western nations, with the prospect of conflict in Ukraine growing.

White House national security adviser Jake Sullivan told Fox News on Sunday that “any day now, Russia could take military action against Ukraine or it could be a couple of weeks from now,” but still left room for the possibility of a diplomatic solution. “We are in the window,” the adviser said.

Read: France’s Macron heads for talks with Russia’s Putin to de-escalate Ukraine crisis

What strategists are saying

“We have little economic data until we see CPI on Thursday. We do have Treasury supply in 3yr, 10yr, and 30yr this week. On the geopolitical front a Russian invasion of Ukraine is likely according to Jake Sullivan, the national security adviser to President Biden,” wrote managing director Tom di Galoma of Seaport Global Holdings, in a daily note.

/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
3.24
+0.03 +1.03%
Volume: 0.00
June 28, 2022 8:46a
loading...
/zigman2/quotes/211347045/realtime
add Add to watchlist BX:TMUBMUSD02Y
BX : Tullett Prebon
3.13
+0.03 +1.00%
Volume: 0.00
June 28, 2022 8:45a
loading...
/zigman2/quotes/211347052/realtime
add Add to watchlist BX:TMUBMUSD30Y
BX : Tullett Prebon
3.36
+0.04 +1.11%
Volume: 0.00
June 28, 2022 8:46a
loading...
/zigman2/quotes/211347046/realtime
add Add to watchlist BX:TMUBMUSD03M
BX : Tullett Prebon
1.75
+0.08 +4.93%
Volume: 0.00
June 28, 2022 8:40a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.