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Treasury yields rose Friday, after four days of falls, as global equity markets look to recover from the biggest one day fall since March on Thursday amid worries that the U.S.’s coronavirus crisis would deteriorate.
What are Treasurys doing?
The 10-year Treasury yield TMUBMUSD10Y, 0.704% rose 5.5 basis points to 0.708%, while the 2-year note rate TMUBMUSD02Y, 0.193% edged 1.8 basis points higher to 0.197%. The 30-year bond yield TMUBMUSD30Y, 1.456% climbed 6.2 basis points to 1.465%.
What’s driving Treasurys?
U.S. equity futures were pointing to a positive start on Friday, after the S&P 500 SPX, -5.89% and Dow Jones Industrial Average DJIA, -6.89% saw their biggest daily tumble since March when markets were roiled over concerns that the COVID-19 pandemic was spreading again across the U.S.
Recent data show that U.S. states that had been spared in the early days of the pandemic like Florida, Texas and Arizona were now seeing record increase in case counts as the country loosens restrictions on business and household activity.
What did market participants’ say?
“The largest risk now, is that a second wave of infections may plague the U.S. and other countries as they open their economies. We still favor a U-shaped recovery which should underpin interest rates to the lower end of the range,” wrote Tom di Galoma, managing director of Treasurys trading at Seaport Global Securities.
