Bond Report: Treasury yields dip as growth concerns linger

by | Dec 29, 2022 | Stock Market

Bond yields dipped on Thursday in holiday-thinned trade as New Year looms.What’s happening
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.361%
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
TMUBMUSD10Y,
3.878%
retreated 2.2 basis points to 3.862%.

The yield on the 30-year Treasury
TMUBMUSD30Y,
3.970%
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 …

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