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Oct 13, 2020

Bonds: Treasury yields edge lower with stimulus and earnings in focus

 

Elliot Smith


U.S. government debt prices were higher Tuesday morning following the Columbus Day holiday, with the focus remaining on the prospects for a new fiscal stimulus package and a flurry of corporate earnings.

At around 4:15 a.m. ET, the yield on the benchmark 10-year Treasury note was lower at 0.7521% and the yield on the 30-year Treasury bond was down at 1.5428%. Yields move inversely to prices.

Treasurys

TICKER COMPANY YIELD CHANGE %CHANGE
US3MU.S. 3 Month Treasury0.1010.000.00
US1YU.S. 1 Year Treasury0.1340.000.00
US2YU.S. 2 Year Treasury0.151-0.0020.00
US5YU.S. 5 Year Treasury0.326-0.010.00
US10YU.S. 10 Year Treasury0.76-0.0150.00
US30YU.S. 30 Year Treasury1.553-0.0210.00

Investor focus remains attuned to news of an impending coronavirus aid bill, with the White House pursuing a deal with Democratic lawmakers. Some market participants are now pinning their hopes on a sweeping Democratic victory on Nov. 3 in the hope of a greater package after the election.

The first batch of third-quarter corporate earnings is due Tuesday ahead of a busy week on Wall Street which will likely factor into investor sentiment.

JPMorgan ChaseCitigroup and Delta Air Lines are all due to report Tuesday. Third-quarter results are expected to fall sharply, but traders are hoping for positive surprises.

On the data front, September’s inflation rates are due at 8:30 a.m. ET on Tuesday, while the IBP/TIPP economic optimism survey for October is released at 10 a.m.

Auctions will be held Tuesday for $54 billion of 13-week Treasury bills, $51 billion of 26-week bills and $30 billion each of 119-day and 43-day bills.

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