Treasury yields are on the rise amid renewed hopes for a coronavirus aid deal as well as solid economic data out of China

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Treasury yields jumped on Monday amid renewed optimism that a coronavirus aid package could be agreed upon in the coming days.

The yield on the benchmark 10-year Treasury note rose 4 basis points to 0.781%, the highest level since Oct. 9. The yield on the 30-year Treasury bond jumped 4 basis points to 1.574%, also the highest level in more than a week. Yields move inversely to prices.

 

House Speaker Nancy Pelosi on Sunday called on the Trump administration to reconcile remaining disputes on coronavirus stimulus package within 48 hours as lawmakers attempt to pass a bill before the 2020 election. Negotiations in Washington have dragged on for months.

“The overnight weakness in Treasuries offers further confirmation that the prospects for another injection of fiscal stimulus (however limited) outweigh the incoming economic data,” Ian Lyngen, BMO’s head of U.S. rates, said in a note on Monday.

TREASURYS

TICKER	COMPANY	YIELD	CHANGE	%CHANGE
US3M	U.S. 3 Month Treasury	0.096	0.00	0.00
US1Y	U.S. 1 Year Treasury	0.129	0.002	0.00
US2Y	U.S. 2 Year Treasury	0.149	0.004	0.00
US5Y	U.S. 5 Year Treasury	0.338	0.02	0.00
US10Y	U.S. 10 Year Treasury	0.769	0.025	0.00
US30Y	U.S. 30 Year Treasury	1.555	0.026	0.00

Meanwhile, data out of China pointed to a continued rebound from the coronavirus, which boosted risk sentiment.

The world’s second-largest economy reported third-quarter GDP rose 4.9% year over year, bringing growth for the first three quarters of 2020 to 0.7% from a year ago.

The benchmark 10-year rate has risen about 10 basis point this month, and the 30-year yield has climbed a similar magnitude in October. On March 8, the 10-year yield hit an all-time low of 0.318% amid a historic flight to bonds during the pandemic.

Still, investors remained concerned over the surge in Covid-19 cases across the U.S. A CNBC analysis of Johns Hopkins University data showed Covid-19 cases were growing by 5% or more in 38 states as of Friday, with the daily case average nationwide rising by more than 16% week on week to nearly 55,000.

Auctions will be held Monday for $54 billion of 13-week Treasury bills and $51 billion of 26-week bills.