Authorities bond yields are rebounding, assuaging issues a couple of international financial slowdown
US Treasury bond yields rebounded on Friday, easing some worries about a global economic slowdown, partly due to the surprising decline in yields in recent months.
The benchmark ten-year government bond yield rose 5 basis points to 1.344% at 9:30 a.m. ET. The yield on the 30-year government bond rose 6 basis points to 1.978%. The returns move inversely to the prices and 1 basis point corresponds to 0.01 percentage points.
The rebound follows a sharp decline in yields on Thursday, which rocked equity markets and lowered the 10-year yield to 1.25%. Stock futures rebounded on Friday as yields rebounded.
Government bond yields have fallen over the past week, with the spread of the more transferable Delta-Covid-19 variant dampening sentiment. The 10-year government bond yield was 1.43% at the end of last week. In March it was 1.78%.
In addition, the Labor Department’s weekly jobless claims for the week ending July 3 showed an unexpected surge in first-time applicants. The data released on Thursday showed that 373,000 unemployment insurance claims were filed last week, which is above economists’ forecast of 350,000 initial claims.
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David Marchant, chief investment officer at Canada Life Asset Management, told CNBC’s Squawk Box Europe on Friday that he believes the “risk of inflation not being controlled is not reflected in the fact that inflation will accelerate. where government bonds or bonds are generally traded. “
No major economic data or treasure auctions are scheduled for Friday.
Over the weekend, Federal Reserve Vice Chairman for Oversight, Randal Quarles, will address the Central Bank’s Financial Stability Board and Climate Change at the Venice International Conference on Climate Change at 9:20 a.m. ET on Sunday.
Correction: In an earlier update, the correct level of the 30 year Treasury yield was incorrectly stated.