US Treasury Yields Show Positive Momentum Before Iran Deal
Today is all about the Iran deal and the stock market is being highly dependent on it. Latest reports reveal that the US government debt yields edged higher on Tuesday, as the investors waited for the initial three major Treasury auctions for the week. Moreover, the investors were also waiting for Donald Trump to make an announcement regarding the Iran nuclear deal.
Things looked positive for the US Treasury Yields, as the benchmark on the 10-year Treasury note increased and was at 2.972 percent around 9:18am ET. On the other hand, the yield on the 30-year Treasury bonds was also higher, as it valued at 3.138 percent. However, the bonds showed some negative momentum and were kind of inverse to the prices.
Today, the international and domestic markets are both keeping a keen eye on the US administration,which is going to announce their stance on the Iran nuclear deal. Trump’s stance on the Iran hasn’t been so favorable up till now as during the past, he has threatened to take out the US from Iran deal. This lifted the sanctions on many Middle Eastern countries as the country pulled back on its nuclear goals.
A lot is dependent on the Iran nuclear deal but the yields today have pointed out towards a positive momentum. Moreover, the ballooning bond supply has also continued to play a successive and huge role in the fixed income market. It was revealed that the Treasury Department has also made a decision to auction $31 billion in 3 year notes on Tuesday, before the $25 billion auction of the decade long, 10 year notes on Wednesday, alongside the sale of the 30 year bonds on Thursday.
Moreover, other important data is also going to be revealed today. The Job Openings and Labor Turnover Survey will be reported at 10 am ET, before the key inflation data revealed later during the week. Moreover, the energy costs and food costs remained volatile, as they rose by 0.2 percent during the month of April compared to the last month.