10 years government bond rate
The U.S. bond market pulled back Monday, pushing up the yield on the benchmark 10-year Treasury note from its lowest level in more than six months.
Some investors sold bonds to book profit following last Friday's price rally driven by a disappointing U.S. employment report.
The bond market pared its price decline after a report showed the monthly gauge of the U.S. service industry softened last month. The release adds to a growing debate whether the U.S. growth momentum may be less robust than many investors have expected.
The yield on the benchmark 10-year Treasury note settled at 2.182%, compared with 2.159% Friday which was the lowest close since Nov 10. Yields rise as bond prices fall.
The subdued move in the bond market also reflects investors' hesitance to place large bets before some events later this week that may impact global markets. The highlight will be Thursday with the latest monetary policy meeting from the European Central Bank, a snap election in the U.K. and a congressional testimony by former FBI Director James B. Comey.
Many investors expect the ECB to keep its bond buying program steady and refrain from sending strong signals that it would soon dial back stimulus. Stan Shipley, senior managing director of fixed-income strategy at Evercore ISI, said the ECB is likely to wait after the German elections later this year before making decisions on tapering bond buying.
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ECB's bond buying program has played a big role in compressing global government bond yields at very low levels from a historical standpoint. Lower government bond yields in Germany have been making U.S. Treasury debt more appealing, which has been keeping a lid on U.S. yields' ascent and frustrating bond bears betting on higher Treasury yields. The yield on the 10-year German bund was 0.286% Monday.
"Any shock from the ECB, such as signaling an early exit" would rattle government bond markets in the eurozone and ripple into the U.S., said Jason Evans, co-founder of hedge fund NineAlpha Capital LP.
A sign of the U.S. bonds' appeal, the yield premium investors demanded on Monday to own the 30-year Treasury bond relative to the 30-year German government debt fell to the smallest level since April 2016, according to Tradeweb.
A shrinking premium means some investors sold the German bond to buy its U.S. counterpart. The shrinkage also reflected some anxiety toward the ECB's bond buying policy outlook because long-term bonds are the most vulnerable to the central bank's reduced stimulus.
The 10-year Treasury yield fell by 0.06 percentage point last Friday after the nonfarm payrolls report for May showed smaller-than-forecast job gains and subdued wage inflation, even as the unemployment rate fell to the lowest level since 2001.
Analysts say the data is unlikely to stop the Federal Reserve from raising short-term interest rates next week, but it raises some question whether the central bank may stand pat during the balance of this year after a June hike.
Expectations of a slow-moving Fed have reduced anxiety over a swift rise in Treasury bond yields, bolstering demand for long-term Treasurys. The 10-year Treasury yield closed above 2.6% in March and reached the highest level since Sept 2014.
The 10-year Treasury yield has fallen more than 0.2 percentage point this year after a big rise in late 2016. The shift into lower yields accelerated last week even as U.S. stocks set fresh record highs.
Some analysts say the bond market is offering a note of caution for investors chasing riskier markets at elevated valuation. Optimism over President Donald Trump's fiscal agenda has been waning. Inflation has been slowing down, with some metrics drifting below the Fed's 2% target last month, an antithesis toward the narrative of stronger growth and higher inflation that dominated financial markets following the U.S. presidential race last November.
Some investors say higher stocks and Treasury bond prices reflect ample liquidity thanks to steady bond purchases from the ECB and the Bank of Japan. The results are still easy financial conditions which bolster investors' hunt for income in a world of low yields and low volatility, fueling higher prices in stocks, corporate bonds and emerging-market assets.
Corrections & Amplifications
This article was corrected at 4:13 p.m. ET because the original version incorrectly stated in the first paragraph and headline that the 10-year yield fell to its lowest level in more than five months. It should be more than six months.school success short success quotes singing success skin success standard for success struggling from success study to success success academy videos success antonym success auto sales success baby success clipart success doesn't come from what you do occasionally success image success images success in life success inspirational quotes for work success is counted sweetest success mindset success motivational quotes for work success overnight success positive affirmations success positive motivational quotes success quotes success quotes for men success realty success sharing home depot success sharing home depot success synonyms success thesaurus success through a positive mental attitude success wallpaper success words technaflora recipe for success tethered spinal cord surgery success rate the key success factors in an industry the key to success tarkov the national society of leadership and success reviews the seven spiritual laws of success there is no elevator to success tools for success was reconstruction a success what does a customer success manager do what is the success rate of a spinal cord stimulator attitude eagle quotes success bumble success stories dress for success denver foster care to success how do you spell success lake success, ny membrane sweep success rate misdiagnosed blighted ovum success stories opposite of success performance manager 4 success factors provera pregnancy success success good luck wishes success hunters success in latin success is no accident quotes the law of success celebrate success continuing success goal success quotes ivf success key to success in life magnet of success married at first sight success rate quotes about failure and success slug success success affirmations success credit union success interviews success quotes for business success rate of iui vitrectomy success rate what does a customer success manager do amazon onsite interview success rate ivf calculator success keto success motivate for success ralph waldo emmerson success stem cell transplant success rate study to success success books success companies success is not final, failure is not fatal: it is the courage to continue that counts. success mantra success pronunciation success quote success vision paducah ky the law of success weight watchers success stories achieves success animal mating success ankle ligament surgery success rate attitude eagle quotes success borat great success castor oil at 37 weeks success cdc ivf success rates center for academic success cerebral success class room for success crystal for success customer success metrics director of customer success salary dress for success locations near me equipped for reading success failure and success quotes geritol pregnancy success stories 2020 hotel dash suite success how do you define success interview question how i raised myself from failure to success in selling isaac success iui success stories 2020 ivf success rates by age 2020 ivf success stories john wooden success quote key to success lake success, new york late ovulation pregnancy success liver transplant success rate lumbar radiofrequency ablation success rate mantras for success march to success metformin weight loss success stories mindset the new psychology of success motivational quotes for students success motivational quotes for work success motivational speeches for success outliers the story of success p shot success rate pearson success net peloton success stories pillars of success positive quotes about success prayer for exam success prayer for success at work quotes for future success quotes success rowing machine weight loss success stories rowing machine weight loss success stories scentsy success secret to my success seven spiritual laws of success pdf skill success skill success success success academy middle schools success criterias success factor success meanings success motivation success nutrition facts success plan template success quotes for work success rice success rice out of the bag success thesaurus success vision express success vision topeka success vision topeka sweet success cucumber the 10x rule: the only difference between success and failure the 7 spiritual laws of success the secret of my success the secrets of lake success tips for success topamax and phentermine weight loss success stories 2020 tti success insights vaccine success vasectomy success rate weaning off cymbalta success stories what is success to you framing success plan for success student success center gcu student success completion grant success companies success driving school