Treasury yields climbed on Monday after President Donald Trump signed a $900 billion Covid-19 relief bill into law.
The 10-year Treasury yield, which moves opposite to prices, rose 2 basis points to 0.954%. The 30-year Treasury bond rate jumped 4 basis points to 1.700%.
Trump averted a government shutdown late Sunday, and extended unemployment benefits to millions of Americans. The signing came days after Trump suggested he would veto the legislation, demanding $2,000 direct payments to Americans, instead of $600.
“With the spending bill now law, I think we’re going to take another try at that 1% level in the 10 yr with us up 3 bps today to .96%,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note. “The 30 yr is back to 1.70% and I think headed to 2% in early 2021.”
Treasury yields have been edging higher on optimism toward a second Covid stimulus deal with the 10-year rate up more than 10 basis points this month.
The benchmark rate hit a record low of 0.318% in March amid a historic flight to safe bonds during the depth of the coronavirus pandemic.
