AGL 5.72 Increased By ▲ 0.02 (0.35%)
ANL 8.93 Decreased By ▼ -0.17 (-1.87%)
AVN 79.42 Increased By ▲ 0.26 (0.33%)
BOP 5.18 Decreased By ▼ -0.03 (-0.58%)
CNERGY 4.69 Decreased By ▼ -0.04 (-0.85%)
EFERT 81.32 Increased By ▲ 0.21 (0.26%)
EPCL 50.91 Increased By ▲ 0.16 (0.32%)
FCCL 13.45 Decreased By ▼ -0.07 (-0.52%)
FFL 5.80 Increased By ▲ 0.04 (0.69%)
FLYNG 7.18 Decreased By ▼ -0.11 (-1.51%)
FNEL 4.80 Decreased By ▼ -0.04 (-0.83%)
GGGL 8.72 Decreased By ▼ -0.17 (-1.91%)
GGL 15.73 Decreased By ▼ -0.07 (-0.44%)
HUMNL 5.84 Increased By ▲ 0.01 (0.17%)
KEL 2.58 Decreased By ▼ -0.01 (-0.39%)
LOTCHEM 29.31 Decreased By ▼ -0.49 (-1.64%)
MLCF 25.37 Increased By ▲ 0.22 (0.87%)
OGDC 72.56 Decreased By ▼ -0.14 (-0.19%)
PAEL 15.39 Decreased By ▼ -0.08 (-0.52%)
PIBTL 5.17 Increased By ▲ 0.04 (0.78%)
PRL 16.27 Decreased By ▼ -0.23 (-1.39%)
SILK 1.05 Decreased By ▼ -0.05 (-4.55%)
TELE 9.34 Decreased By ▼ -0.21 (-2.2%)
TPL 7.35 Increased By ▲ 0.02 (0.27%)
TPLP 19.10 Decreased By ▼ -0.16 (-0.83%)
TREET 21.89 Increased By ▲ 0.05 (0.23%)
TRG 142.76 Decreased By ▼ -1.34 (-0.93%)
UNITY 17.20 Decreased By ▼ -0.32 (-1.83%)
WAVES 10.05 Increased By ▲ 0.05 (0.5%)
WTL 1.36 Decreased By ▼ -0.01 (-0.73%)
BR100 4,248 Decreased By -10.3 (-0.24%)
BR30 15,761 Decreased By -79.9 (-0.5%)
KSE100 42,349 Decreased By -25 (-0.06%)
KSE30 15,632 Decreased By -33.3 (-0.21%)
Follow us

NEW YORK: The benchmark US 10-year Treasury yield rose on Friday following its biggest two day drop in about three weeks after economic data indicated high inflation could persist for some time.

The producer price index for final demand rose 0.7% last month, the Labor Department said, a tick above the 0.6% estimate. In the 12 months through August, the index has accelerated 8.3%, the largest year-over-year advance since November 2010.

Investors have been highly attuned to labor market and inflation data for signs of when the US Federal Reserve may announce plans to begin tapering its massive bond-buying program.

But rising COVID-19 cases from the Delta variant threaten to stall the economic recovery, which could alter the Fed's policy path. On Thursday, President Joe Biden announced policies that require most federal employees to get COVID-19 vaccinations and push large employers to have their workers inoculated or tested weekly.

"The fact we are locking down and causing some economic destruction again is having a positive effect on bond yields," said Tom di Galoma, managing director at Seaport Global Holdings in New York.

"Everybody that is in the economic world sees inflation ... it is definitely there but the market is discounting it because of the variant, that is really the bigger picture."

The yield on 10-year Treasury notes was up 4.1 basis points to 1.341%. For the week, the yield was up 3 basis points and on pace for its third straight weekly gain, which would mark the longest streak of weekly gains since a seven-week run that ended in mid-March.

The 10-year yield has traded between a high of 1.423% and a low of 1.127% since mid-July, and di Galoma expects that range to play out until early October.

Multiple Fed officials have this week said a slowdown in job growth wouldn't necessarily throw the central bank's plan to cut asset purchases this year off track, even after last week's payrolls report fell well short of expectations.

On Friday, Cleveland Federal Reserve Bank President Loretta Mester reiterated her stance from late August that she would like tapering to begin this year.

Comments

Comments are closed.

US yields higher after inflation data

Govt remains committed to eliminate interest-based banking system in Pakistan: Dar

At least 3 killed, over 20 injured in suicide blast in Quetta

Rupee closes unchanged against US dollar for second day

Blast in Hangu mine leaves 9 dead, 4 injured

Aramco discovers two new Saudi gas fields

Pakistan’s REER rises to 17-month high at 100.4 in October

Oil up over $2 on tighter supply while OPEC+ talks limit gains

World Bank says remittances up 5% in 2022, but growth to slow to 2% next year

Punjab local government election to be held in April: ECP

Azam Nazeer Tarar takes charge as law minister again