Authorities bond yields transfer after Biden’s stimulus announcement

Government bond yields came under pressure on Friday as investors digested disappointing economic data as well as President-elect Joe Biden’s $ 1.9 trillion stimulus plan.

The yield on the benchmark 10 year Treasury note fell 3 basis points to 1.096%, while the yield on the 30 year Treasury note fell 4 basis points to 1.838%. The returns move inversely to the prices.

The trading division announced on Friday that retail sales fell 0.7% in December and closed 2020 sourly. Economist polled by Dow Jones expects a decline of 0.1% in December.

Excluding automobiles, gasoline, building materials and food services, retail sales fell 1.9% last month after being revised downwards by 1.1% in November.

The unexpectedly weak retail data after an unexpected surge in weekly jobless claims. The Department of Labor said Thursday that initial unemployment insurance entitlements in the US rose to 965,000 over the past week. That was more than Wall Street’s estimates of 800,000 claims, suggesting a further slowdown in the US labor market due to pandemic public health restrictions.

Yields rose in the previous session after Federal Reserve Chairman Jerome Powell said the central bank would not hike rates anytime soon unless there was unwanted inflation.

On Thursday night, Biden outlined the details of his proposed government spending plan called the American Rescue Plan. It includes the extension of federal unemployment benefits through September and direct payments to many struggling Americans of $ 1,400.

No auctions are due on Friday.

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