U.S. Treasury yields extended their move higher on Friday as investors monitored signs of progress on a stimulus deal in Washington.
The yield on the benchmark 10-year Treasury note climbed for a seventh straight day to 0.859%, the highest level since June. The yield on the 30-year Treasury bond also rose slightly to 1.680%. Yields move inversely to prices.
Yields climbed after House Speaker Nancy Pelosi suggested Thursday that progress was being made in negotiations with the White House over an economic stimulus package and an expected a deal could be signed “pretty soon.”
Positive news on the coronavirus vaccine front also drove investors out of safe bonds. Gilead Sciences said the Food and Drug Administration approved the company’s drug, remdesivir, for use as a treatment against the coronavirus.
Rising yields also followed the final U.S. presidential debate between President Donald Trump and Democratic candidate Joe Biden on Thursday evening.
Investors will also have a eye on flash Markit PMI (purchasing managers’ index) readings, expected at 9:45 a.m. ET, for an indication as to the health of the country’s economic recovery.
No auctions by the U.S. Treasury are scheduled for Friday.