U.S. Treasury yields slumped on Monday morning, as traders kept an eye on President Joe Biden’s efforts to push through his proposed $1.9 trillion economic stimulus plan.
The yield on the benchmark 10-year Treasury note fell to 1.080% around 7:00 a.m. ET, while the yield on the 30-year Treasury bond slipped to 1.830%. Yields move inversely to prices.
Treasury yields dropped as Biden’s coronavirus relief spending package faces opposition from many congressional Republicans.
The fiscal aid includes direct checks to millions of Americans, aid to state and local governments, funding for Covid vaccines and testing, a boost to the minimum wage and enhanced unemployment benefits, among other things.
December data from the Chicago Fed national activity index, which tracks economic activity and related inflationary pressure, is due out at 8:30 a.m. ET on Monday.
January data from the Dallas Fed manufacturing index is then due out at 10:30 a.m. ET.
Auctions will be held Monday for $54 billion of 13-week bills, $51 billion of 26-week bills and $60 billion of two-year notes.
— CNBC’s Pippa Stevens contributed to this report.
