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U.S. Treasury yields rise after strong China economic data


U.S. Treasury yields rose early Tuesday trade in line with the positive tone in risky asset markets, following a raft of economic data that showed the recovery in China, the world’s second largest economy, was continuing apace.

What are Treasurys doing?

The 10-year Treasury note yield TMUBMUSD10Y, 0.680% rose 1.2 basis points to 0.681%, while the 2-year note rate TMUBMUSD02Y, 0.137% was steady at 0.139%. The 30-year bond yield TMUBMUSD30Y, 1.430% added 2.1 basis points to 1.429%. Bond prices move in the opposite direction of yields.

What’s driving Treasurys?

Chinese retail sales grew for the first time in 2020, rising 0.5% in August from a year earlier, according to the National Bureau of Statistics. Industrial production in China also rose 5.6%, up from July’s 4.8% increase.

The broad-based improvement in Chinese data helped to alleviate concerns about the world economy’s trajectory in the face of the COVID-19 pandemic. Futures for the U.S. S&P 500 index SPX, +1.27% and Dow Jones Industrial Average DJIA, +1.18% were pointing higher as equities remained on pace to claw back last week’s loses, easing demand for government bonds.Investors will handle plenty of U.S. data Tuesday, too. A September snapshot of manufacturing activity in New York state and an […]

read more here —> www.marketwatch.com

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