10-Year US Treasury Yield Falls as Equities Rebound
The US Treasury’s 10-year hit a high yield of -1.145% on Thursday, down from the -0.939% high in the previous auction. Market data shows that the bid to cover ratio for the auction was 2.43, below the 2.55 ratio in the previous auction. Dealers represented 54.7% of the bids, with direct bidders at 7.98% and indirect bidders at 37.32%.
For takedown, bidders took 10.2%, with direct bidders at 12.98% and indirects were awarded 76.82% Meanwhile, stocks reversed midday Thursday from earlier losses amid strength in the technology and consumer discretionary sectors.
The S&P 500 was up 0.2% to 4,698.42, the NASDAQ gained 0.2% to 15,958.49, and the Dow Jones Industrial Average fell 0.2% to 35,867.95.
Utilities, consumer staples, and financials lagged. Nvidia (NVDA) shares surged 10%, leading the S&P 500, after the supplier of computer processing chips provided fourth-quarter sales guidance above expectations, with data centre and gaming expected to continue driving strong demand.
The worst performer on the S&P 500 and the Dow was Cisco Systems (CSCO), with shares down 7.7%, after the networking equipment provider reported fiscal first-quarter earnings that beat estimates while sales rose less than expected amid supply chain snags.
US initial jobless claims slipped to 268,000 during the week ended Nov. 13 from 269,000 in the previous week, which was revised up by 2,000, according to data from the Department of Labor released ahead of the opening bell. Analysts had expected 261,000, according to Econoday.
Claims were still the lowest since the week of March 14, 2020, when the number stood at 256,000.
“The trend is still strongly downward,” said Pantheon Macroeconomics Chief Economist Ian Shepherdson. “Unfortunately, the numbers will be volatile over the holidays, as usual, starting as soon as next week’s pre-Thanksgiving report. The next clean read on the data will be in mid-January.”
West Texas Intermediate crude oil rose $0.46 to $78.79 per barrel after touching an intraday low of $77.08 per barrel, its lowest level in about six weeks, earlier in the session.
“While a potential [US strategic petroleum reserve] release remains a near-term risk for the market, we model tight crude balances through mid-2022 such that we see fundamentals ultimately winning out and supporting a rebound in price should the SPR (or a combination of SPRs) be tapped,” Tudor Pickering Holt analyst Matt Murphy said in a note.
In the metals markets, gold was down 0.4% to $1,863.60 per troy ounce and silver fell 0.7% to $24.98 an ounce, while copper gained 1.2% to $4.32 per pound. # 10-Year US Treasury Yield Falls as Equities Rebound
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