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U.S. Treasury yields were seeing slight moves but more mostly stable early Monday after the Trump administration signed an executive order aimed at giving relief to households stricken by the coronavirus crisis.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.552% stood at 0.559%, compared with 0.562% on last Friday. The 2-year note TMUBMUSD02Y, 0.121% was at 0.129%, after trading at 0.127% at the end of last week. The 30-year bond yield TMUBMUSD30Y, 1.229% was virtually unchanged at 1.230%.
What’s driving Treasurys?
President Donald Trump issued an executive order and memorandums over the weekend aimed at boosting the U.S. economy. He announced an extension of federal unemployment benefits to $400 a week and ordered that companies will be able to avoid paying payroll taxes. But economists say the order is likely to face legal challenges. However, the president’s moves may provide some incentive for Congressional lawmakers to return to the negotiating table.
Some economic data will arrive in the morning, following the stronger-than-expected July jobs report last week. The Labor Department will issue its job openings and labor turnover survey for June at 10 a.m. ET.
This week, bond traders will take down a wave of bond supply, after the Treasury Department increased the size of all of its major debt auctions last week. The U.S. Treasury will sell $137 billion of notes and bonds ranging between maturities of 3 years to 30 years.
What did market participants’ say?
“The actual impact of the executive orders made by the President is up for debate,” said analysts at Rabobank.
“In addition it is not clear if he actually has the power to make all of these orders and, as a result, there is the potential for some measures to face legal challenges,” they said.
