The Biden government is looking for ways to reform the criminal justice system. Edward Lawrence of FOX Business with more.
The US Treasury’s oldest earnings soared on Thursday morning after reports said President-elect Joe Biden supported a COVID-19 aid package worth up to $ 2 trillion.
The size of the stimulus package is larger than the $ 1.3 trillion plan that future Senate majority leader Chuck Schumer, a New York Democrat, was looking for, according to Bloomberg.
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The 10-year benchmark yield rose to 2.9 basis points to 1.117%, reaching its highest level since March 19. The 30-year yield rose 4 basis points to 1.858%.
Meanwhile, shorter-term yields remained little changed, with the two-year yield rising 0.2 basis points to 0.149%.
Sales raised the yield curve more steeply, with the 2 to 10 year spread rising to 95.8 basis points, the highest since January 2017. A steeper yield curve indicates that investors are anticipating a recovery economic growth will occur earlier in that period of time, not later.
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“Since the beginning of August 2020, the 10-year Treasury’s yield has been rising and we think we will see more of the same in the rest of 2021,” wrote Ryan Detrick, chief market strategist at LPL Financial.
The 10-year yield hit a record low of 0.398% on March 9, about a week before home orders to slow down the spread of COVID-19 began. Yield revised the level of 0.5% in early August and has since been rising.
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Detrick sees the rise in earnings continuing throughout 2021, with the 10 years ending the year somewhere between 1.25% and 1.75%, as new stimuli support an economic recovery from the sharpest deceleration of the post-Monday era World War and as inflation increases.
The 10-year term reaching 1.4% to 1.5% can be a “technically attractive point of purchase”, especially for foreign investors, said Detrick.