U.S. 10-Year Yield on Track for Biggest Weekly Increase Since March
- Rate breaches 1.54% as infrastructure plan conjures inflation
- Yield curve resumes steepening, led by European markets
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The benchmark 10-year Treasury yield headed for its biggest weekly increase since March as reflation trades regained appeal after U.S. President Biden sealed a $579 billion bipartisan infrastructure deal with legislators.
The rate rose as much as five basis points above 1.54% in New York trading Friday, and was 10 basis points higher on the week. Other drivers of the move included a deeper, supply-driven selloff in European government bonds and expectations that next week’s corporate new-issue calendar will entail selling of Treasuries as a hedge.