AVN 67.70 Decreased By ▼ -0.78 (-1.14%)
BOP 9.24 Decreased By ▼ -0.11 (-1.18%)
CHCC 138.00 Decreased By ▼ -5.10 (-3.56%)
DCL 10.58 Decreased By ▼ -0.32 (-2.94%)
DGKC 112.60 Decreased By ▼ -1.65 (-1.44%)
EFERT 64.80 Increased By ▲ 0.08 (0.12%)
EPCL 43.75 Decreased By ▼ -0.65 (-1.46%)
FCCL 21.26 Decreased By ▼ -0.92 (-4.15%)
FFL 15.81 Decreased By ▼ -0.38 (-2.35%)
HASCOL 15.70 Decreased By ▼ -0.09 (-0.57%)
HBL 135.00 Increased By ▲ 0.09 (0.07%)
HUBC 84.20 Increased By ▲ 4.32 (5.41%)
HUMNL 7.91 Decreased By ▼ -0.29 (-3.54%)
JSCL 26.10 Decreased By ▼ -0.44 (-1.66%)
KAPCO 29.14 Increased By ▲ 0.64 (2.25%)
KEL 3.83 Decreased By ▼ -0.02 (-0.52%)
LOTCHEM 11.99 Decreased By ▼ -0.17 (-1.4%)
MLCF 42.31 Decreased By ▼ -1.26 (-2.89%)
OGDC 96.35 Decreased By ▼ -0.91 (-0.94%)
PAEL 34.40 Decreased By ▼ -1.72 (-4.76%)
PIBTL 13.34 Increased By ▲ 0.26 (1.99%)
PIOC 99.00 Decreased By ▼ -4.70 (-4.53%)
POWER 10.07 Decreased By ▼ -0.32 (-3.08%)
PPL 85.96 Decreased By ▼ -0.45 (-0.52%)
PSO 206.89 Decreased By ▼ -0.79 (-0.38%)
SNGP 59.54 Decreased By ▼ -0.66 (-1.1%)
STPL 13.20 Increased By ▲ 0.12 (0.92%)
TRG 49.73 Decreased By ▼ -1.43 (-2.8%)
UNITY 22.24 Decreased By ▼ -0.49 (-2.16%)
WTL 1.07 Decreased By ▼ -0.02 (-1.83%)
BR100 4,289 Decreased By ▼ -21.55 (-0.5%)
BR30 21,878 Increased By ▲ 69.16 (0.32%)
KSE100 41,187 Decreased By ▼ -194.97 (-0.47%)
KSE30 17,297 Decreased By ▼ -80.48 (-0.46%)
COVID-19 TOTAL DAILY
Markets

US yields advance on stimulus hopes, Trump's health status

  • US 10-year, 20-year, and 30-year yields rose to five-week highs, while the yield curve steepened to its widest since late August.
05 Oct 2020

NEW YORK: US Treasury yields rose on Monday, as President Donald Trump's improving health bolstered risk sentiment, and expectations grew that a stimulus package to combat the economic impact of the pandemic could be completed before the November presidential election.

US 10-year, 20-year, and 30-year yields rose to five-week highs, while the yield curve steepened to its widest since late August.

In line with the rise in yields, shares on Wall Street were higher on the day, while the safe-haven dollar and yen were weaker.

Trump began a fourth day at the military hospital on Monday where he is being treated for COVID-19.

His medical team told reporters on Sunday that Trump could return to the White House as early as Monday.

At the same time, hopes about a US stimulus deal have increased.

White House Chief of Staff Mark Meadows said on Monday there is still potential to reach agreement with US lawmakers on more economic relief during the coronavirus pandemic, and Trump is committed to getting the deal done.

"Trump's improving health is helping the risk-on sentiment," said Gennadiy Goldberg, senior rates strategist at TD Securities in New York.

"The market is also trading the stimulus. The expectation is that something will get done before the election, so investors are penciling in the potential for coupon supply," he added.

In mid-morning trading, US 10-year yields rose to 0.733pc, from 0.694pc late on Friday, after earlier rising to 0.739pc, the highest level since late August.

US 20-year yields also a hit a five-week peak of 1.308pc and were last at 1.305pc.

Yields on US 30-year bonds were at 1.537pc, up from 1.48pc on Friday. Earlier, 30-year yields climbed to a five-week peak of 1.543pc.

On the short end of the curve, US 2-year yields rose to 0.134pc, from 0.133pc.

The yield curve steepened on Monday, with the spread between the 10-year and two-year widening to as much as 60.2 basis points, the widest spread since late August.

The curve has steepened by about 10 basis points since early September, as investors have piled into short-term debt, having ruled out rate hikes in the immediate future.