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Oct 17, 2019

Bonds | Treasury Yields Report: Treasury yields higher after UK and European Union reach new Brexit deal

Thomas Franck



U.S. government debt yields rose Thursday after both U.K. Prime Minister Boris Johnson and the European Union announced a new draft Brexit deal.
Though it remained unclear whether the new accord would clear U.K. Parliament, the apparent success of the last-ditch talks was enough to foster a modest pivot toward riskier assets in both American and European markets.
The yield on the benchmark 10-year Treasury note rose to 1.748% after climbing as high as 1.799% earlier in the session, its highest level since Sept. 19. The yield on the 30-year Treasury bond also rose to a one-month high of 2.272% before moderating its rise to 2.234%. Bond yields rise as prices fall.
The rise in Treasury yields came after reports that the U.K. made concessions over the Irish border in negotiations with the EU, an issue that had proven to be the biggest obstacle to a deal up to that point. The pound was 0.2% higher against the dollar, at $1.2858 after reaching a five-month high in earlier trading.
U.K. Prime Minister Boris Johnson said “we have a great new Brexit deal” via Twitter. He called on British lawmakers to back the deal when it’s put before Parliament on Saturday.
European Commission President Jean-Claude Juncker, meanwhile, called the deal “fair and balanced.”
U.S. corporate earnings have been strong thus far, but trade concerns returned Wednesday as the Wall Street Journal reported that Chinese purchases of U.S. agricultural products may not be as substantial as initially thought, casting doubt over progress in talks between Washington and Beijing.
U.S. Treasury Secretary Steven Mnuchin said Wednesday that trade negotiators from the world’s two largest economies are working to finalize a phase one trade deal draft to be presented to presidents Donald Trump and Xi Jinping.

Treasurys

TICKER COMPANY YIELD CHANGE %CHANGE
US 3-MOU.S. 3 Month Treasury1.6740.0050.00
US 1-YRU.S. 1 Year Treasury1.591-0.0030.00
US 2-YRU.S. 2 Year Treasury1.596-0.0040.00
US 5-YRU.S. 5 Year Treasury1.566-0.0110.00
US 10-YRU.S. 10 Year Treasury1.745-0.010.00
US 30-YRU.S. 30 Year Treasury2.231-0.0120.00

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