Bond yields dipped on Thursday in holiday-thinned trade as New Year looms.What’s happening
The yield on the 2-year Treasury
slipped by less than 1 basis point to 4.345%. Yields move in the opposite direction to prices.
The yield on the 10-year Treasury
retreated 2.2 basis points to 3.862%.
The yield on the 30-year Treasury
fell 2 basis points to 3.955%.
What’s driving markets Trading is thin because of the festive holiday period, and with many investors reluctant to make fresh bolds bets given the new year is only a few days away.
However, there is softness in yields as some traders worry that Beijing’s easing of travel restrictions will help COVID-19 spread internationally and impact other economies. “I warn my backers…not to read too much into this week’s low volume /liquidity price action,” said Stephen Innes, managing partner at SPI Asset Management. “Many factors affect market performances during the winter holiday; least of all, institutional investors are forced to turn very transactional into quarter-end and year-end rebalancing activity,” Innes added. There is little economic data for investors to consider in coming sessions, too. The weekly initial jobless claims report will be published at 8 …