ANL 34.00 Increased By ▲ 0.90 (2.72%)
ASC 14.90 Increased By ▲ 0.55 (3.83%)
ASL 25.10 Increased By ▲ 0.62 (2.53%)
AVN 92.20 Decreased By ▼ -0.30 (-0.32%)
BOP 9.14 Increased By ▲ 0.08 (0.88%)
BYCO 9.85 Increased By ▲ 0.15 (1.55%)
DGKC 134.70 Increased By ▲ 2.51 (1.9%)
EPCL 50.62 Increased By ▲ 0.52 (1.04%)
FCCL 24.63 Increased By ▲ 0.33 (1.36%)
FFBL 25.86 Increased By ▲ 1.46 (5.98%)
FFL 15.49 Increased By ▲ 0.47 (3.13%)
HASCOL 10.56 No Change ▼ 0.00 (0%)
HUBC 86.33 Increased By ▲ 1.23 (1.45%)
HUMNL 7.02 Increased By ▲ 0.27 (4%)
JSCL 25.65 Increased By ▲ 0.40 (1.58%)
KAPCO 41.55 Increased By ▲ 2.80 (7.23%)
KEL 4.02 Increased By ▲ 0.04 (1.01%)
LOTCHEM 14.45 Increased By ▲ 0.02 (0.14%)
MLCF 46.42 Increased By ▲ 0.54 (1.18%)
PAEL 37.25 Increased By ▲ 0.55 (1.5%)
PIBTL 11.70 Increased By ▲ 0.27 (2.36%)
POWER 10.25 Increased By ▲ 0.10 (0.99%)
PPL 90.90 Increased By ▲ 1.20 (1.34%)
PRL 26.86 Increased By ▲ 0.61 (2.32%)
PTC 8.71 Increased By ▲ 0.11 (1.28%)
SILK 1.35 No Change ▼ 0.00 (0%)
SNGP 42.71 Increased By ▲ 1.31 (3.16%)
TRG 146.10 Increased By ▲ 3.00 (2.1%)
UNITY 30.20 Increased By ▲ 0.41 (1.38%)
WTL 1.41 Decreased By ▼ -0.01 (-0.7%)
BR100 4,965 Increased By ▲ 76.98 (1.57%)
BR30 25,754 Increased By ▲ 477.72 (1.89%)
KSE100 45,837 Increased By ▲ 558.82 (1.23%)
KSE30 19,174 Increased By ▲ 275.54 (1.46%)
Markets

Yields rise as European stimulus plan boosts risk appetite

Benchmark 10-year note yields rose one basis point to 0.706pc. The yields have traded in a range from 0.543pc
27 May 2020
  • Benchmark 10-year note yields rose one basis point to 0.706pc.
  • The yields have traded in a range from 0.543pc to 0.785pc since the beginning of April.
  • The Treasury will sell $45 billion in five-year notes on Wednesday, the largest sale of five-year notes on record.

NEW YORK: US Treasury yields edged higher on Wednesday as a European stimulus plan boosted risk appetite and reduced demand for safe-haven bonds, and before the Treasury is due to sell a record amount of five-year notes.

The European Commission unveiled on Wednesday a plan to borrow on the market and then disburse to European Union countries 750 billion euros in grants and loans to help them recover from their coronavirus-related economic slump.

"Rates are being driven by the talk of the European plan to stimulate the economy," said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.

Benchmark 10-year note yields rose one basis point to 0.706pc.

The yields have traded in a range from 0.543pc to 0.785pc since the beginning of April.

That range reflects investor uncertainty over whether there will be a new uptick in the spread of the virus, and a subsequent drop in risk appetite, or whether the economy is on the road to recovery.

"That's the uncertainty that's keeping everything in a tight range," Goldberg said.

The Treasury will sell $45 billion in five-year notes on Wednesday, the largest sale of five-year notes on record.

It sold a record $44 billion in two-year notes on Tuesday to solid demand.

Treasury will also sell $38 billion in seven-year notes on Thursday.

The US government has been increasing the size of its debt auctions as it finances spending meant to blunt the economic impact of business shutdowns designed to stem the spread of the coronavirus.