Bonds & Rates

10-year Treasury yield tests 1.50% again as bond selloff resumes

10-year Treasury yield tests 1.50% again as bond selloff resumes

Last Updated: March 3, 2021 at 3:39 p.m. ET

By Sunny Oh

U.S. Treasury yields shifted higher on Wednesday as the bond-market selloff gained pace, following news reports that European Central Financial institution policymakers were unwilling to intervene to keep government debt yields from rising bond.

What are Treasurys doing?

The 10-year Treasury observe yield  TMUBMUSD10Y, 1.455% rose 5.6 basis points to 1.469%, after rising as high as 1.495%, while the 2-year note rate  TMUBMUSD02Y, 0.144% edged 2 basis factors higher to 0.141%. The 30-year bond yield TMUBMUSD30Y, 2.233% climbed 3.6 basis points to 2.250%.

What’s driving Treasurys?

ECB officials saw no need for drastic action to prevent bond yields from rising, as they felt changes to communications or maintaining the flexibility of its pandemic emergency purchase program, according to Bloomberg News.

Jens Weidmann, the governor of the Bundesbank, stated on Wednesday the ECB had existing tools to deal with higher rates.

Nonetheless, the perceived shift in tone from the ECB despatched U.S. and European government bond yields larger, after some senior ECB policymakers said they were intently monitoring the path of yields last week.

The 10-year German government bond yield TMBMKDE-10Y, -0.311% rose 4.4 basis points to negative 0.297%.

Source: 10-year Treasury yield tests 1.50% again as bond selloff resumes

Back to top button