Treasury prices fell slightly Thursday, pushing yields higher, as the rally in equity futures weighed on demand for haven assets like government paper.
What are Treasurys doing?
The 10-year Treasury note yield
was up 0.8 basis point to 2.387%. The 2-year note yield
rose 2 basis points to 2.188%, while the 30-year bond yield
was virtually unchanged at 2.826%. Bond prices move in the opposite direction of yields.
What’s driving Treasurys?
Investors monitored U.S.-China trade developments after Treasury Secretary Steven Mnuchin said on Wednesday he expected to fly to Beijing to resume trade talks.
But optimism on progress towards a trade resolution waned after President Donald Trump signed an executive order that would enable the U.S. to ban American companies from buying telecoms equipment of “foreign adversaries.” Analysts say though the order does not directly name companies, the move would hurt Chinese telecoms giant Huawei, which has looked to dominate the market for 5G technology networks.
Trade headlines continued to ripple throughout equities, but equity investors still appear to believe in the likelihood of a deal, buoying stocks in the last two sessions.
What else is on investors’ radar?
In economic data, housing starts for April and weekly jobless claims for the week ending May 11 are both set for release at 8:30 a.m.
As for the Federal Reserve, Minneapolis Fed President Neel Kashkari will later speak at 12:05 p.m. on monetary policy.
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