US Treasurys have given up their early gains following some better than expected data. Initial jobless claims fell to their lowest level since November 1973 and housing starts hit a 9-year high. The post-data selling has yields more than 4 basis points at the long end of the curve. Here’s a look at the scoreboard as of 8:41 a.m. ET:
- 2-year +1.3 bps at 1.018% 3-year +1.6 bps at 1.294% 5-year +1.9 bps at 1.690% 7-year +2.5 bps at 2.042% 10-year +2.7 bps at 2.249% 30-year +4.5 bps at 2.967%
Thursday’s reversal comes with Treasurys earlier trying to put in their third straight day of gains following a week of heavy selling after Donald Trump’s surprise victory in the election. After bottoming at 1.72% on election, the benchmark 10-year yield rallied as high as 2.30%.
Early buying was unable to pierce support in the 2.18%/2.20% area for the 10-year yield. That level has acted as support throughout the week.
Selling has swung the yield curve steeper with the 20-year spread now wider at 123 bps.
Fed Chair Janet Yellen will appear before the Joint Economic Committee at 10 a.m. ET, although the transcript of her prepared remarks has already crossed the wires. She will tell the committee that she is expecting a rate hike “relatively soon.”
