Treasury yields edge lower as investors examine data, equity sell-off
U.S. government debt prices were higher Friday morning as investors monitored an array of economic data, along with the Senate blockage of a slimmed-down coronavirus relief bill and further volatility in equity markets.
At around 1:25 a.m. ET, the yield on the benchmark 10-year Treasury note was slightly lower at 0.6788% and the yield on the 30-year Treasury bond was down at 1.4148%. Yields move inversely to prices.
Thursday saw whipsawing trade on Wall Street conclude with the resumption of the recent downward trend, again led by sharp losses for tech megastocks Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft.
The U.S. Treasury sold $23 billion in 30-year bonds on Thursday due to firm demand, sending yields slightly lower and flattening the yield curve. No Treasury auctions will be held Friday.
The Labor Department on Thursday reported 884,000 first-time filings for unemployment insurance, worse than the 850,000 expected by economists surveyed by Dow Jones. Continuing claims from those filing for at least two weeks rose from the previous week, hitting 13.385 million, an increase of 93,000 from a week ago, highlighting the uphill struggle facing the labor market recovery.
Market focus on Friday will shift to August’s inflation and core inflation data, set for release at 8:30 a.m. ET.
In other news, Senate Democrats on Thursday killed a scaled back $300 billion Republican coronavirus relief bill, favoring a far more rigorous and expansive spending package. House Speaker Nancy Pelosi told reporters before Thursday’s vote that a compromise could still be reached prior to the Nov. 3 elections, according to Reuters.
– CNBC’s Yun Li contributed to this report.