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10-year Treasury yield jumps above 0.7% after strong economic data

Treasury yields jumped on Wednesday after strong economic data boosted risk sentiment, driving investors away from safe bonds.

The yield on the benchmark 10-year Treasury note rose more than 3 basis points to 0.7145%. The yield on the 30-year Treasury bond jumped nearly 5 basis points to 1.4326%. Yields move inversely to prices.

Yield extended the gains after data showed U.S. durable goods orders jumped 11.2% in July, well above a Dow Jones estimate of a 4.3% increase. It marks the third consecutive month of improvement for orders for long-lasting factory goods.

“We continue to make progress on getting back what was lost as seen in the chart as things reopen again,” Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group, said in a note. “We now watch to see when the recovery transitions into an expansion.”

On Thursday, Federal Reserve Chairman Jerome Powell will have a speech at the central bank’s annual symposium on monetary policy. Wall Street will look for clues on further stimulus and where the economy is headed out of the event. Investors will be looking specifically for Powell’s comments on inflation and its impact on the dollar. 

Investors also monitored the developments about the pandemic as well as news of further trade talks between the U.S. and China, which resumed Tuesday.

The Treasury is due to auction $22 billion in two-year floating rate notes and $51 billion in 5-year notes. 

— CNBC’s Silvia Amaro contributed to this report.

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