Treasury yields rise after Trump threatens to derail the stimulus bill

U.S. government debt prices were lower on Wednesday after President Donald Trump suggested he could not sign a delayed coronavirus aid package.

The yield on the 10-year Treasury benchmark rose to 0.921%, while the yield on the 30-year Treasury bond was slightly higher at 1.655%. Bond yields are reversed from prices.

Trump on Tuesday poured cold water on Covid’s $ 900 billion aid bill passed by Congress earlier this week. He called the measure an “shameful” measure and urged lawmakers to make a number of changes, including higher direct payments to individuals and families.

The current package includes an increase in unemployment benefits, more loans for small businesses, another direct payment of $ 600 and funds to streamline the critical distribution of Covid-19 vaccines. However, Trump was unhappy with the $ 600 direct payments, demanding their increase to $ 2,000.

Investors were also disturbed this week by a new strain of coronavirus first identified by the UK. It is believed that the variant is up to 70% more transmissible than the previous strains.

In terms of economic data, durable goods, jobless claims, personal income and expenses, new home sales, consumer sentiment and FHFA reports on the housing price index are scheduled to be released on Wednesday.

.Source