EE Treasury returns. United States They fell in doubt Thursday, even after the dismantling of the blockades linked to COVID-19, the economic rebound could be more gradual or weaker than previously thought.
What do treasures do?
The yield on 10-year treasury bills
TMUBMUSD10Y,
fell 3.1 basis points to 0.617%, while the two-year rate
TMUBMUSD02Y,
It was almost flat at 0.0149%. Bond yields at 30 years.
TMUBMUSD30Y,
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It fell 4.6 basis points to 1,294%, a two-week low.
What drives the Treasurys?
The demand for shelters remained strong when investors wondered what a return to economic activity would look like in the United States, Europe and Asia. The World Health Organization has declared that COVID-19 disease "may become another endemic virus in our communities, and this virus will never go away".
Even when government bonds rose, US stocks boosted late gains on Thursday. Capital gains are generally made at the expense of treasury bills, as investors seek to protect themselves from market volatility.
The S&P 500 Index
SPX
up 1.2% and the Dow Jones Industrial Average
DJIA
He gained 1.6%. But the two benchmarks are still on track to finish lower during the week.
In the economic data of EE. In the United States, weekly jobless claims rose 2.6 million in the week ending May 9, slightly less than a consensus forecast of 2.7 million according to Dow Jones data. The Ministry of Labor initially reported that the new claims totaled around 3 million.
The new claims have also brought the total coronavirus crisis to nearly 36.5 million jobs lost in the past two months, the largest loss in U.S. history. USA, with an increase in the unemployment rate of more than 15%.
Lily: This "new threat" to the US economy. United States It goes against conventional wisdom
What did market players say?
"Again, the risk is waning, and the reason is quite simple: investors are starting to believe that COVID-19 will make the recovery expected a few weeks ago very difficult," said Kevin Giddis. Chief Fixed Income Strategist at Raymond James.
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