Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Treasury yields rise, U.S. stocks hit new highs; dollar weakens

Stock MarketsJul 09, 2021 05:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: An investor looks at an electronic board showing stock information at a brokerage house in Beijing, August 27, 2015. REUTERS/Jason Lee/File Photo 2/2

By Alwyn Scott

NEW YORK (Reuters) -Treasury yields extended their rise on Friday while the three major U.S. stock indexes rallied to record closing highs, as markets relaxed a bit from fears of a slowing pace of economic recovery from COVID-19 that dominated trading for much of the week.

In currencies, the safe-haven yen weakened 0.32% versus the greenback at 110.14 per dollar, while the dollar index fell 0.205%, and the euro edged up 0.24% to $1.1871.

Signs of risk relief were tempered, however, as spot gold, another safe-haven asset, logged its third straight weekly gain, rising 0.3% to $1,807.65 an ounce.

Concern about a faltering recovery, driven in part by the spread of the Delta variant of the coronavirus, had reduced risk appetite early in the week and prompted flight-to-safety bond buying, with some betting the reflation trade had stalled.

That action helped push 10-year U.S. government bond yields to a 4-1/2 month low on Thursday. Data released on Friday showed investors through July 6 were reducing short bond positions, which also weighed on yields.

Still, the yield on 10-year Treasury notes rose 7.7 basis points to 1.365% on Friday.

"The downward pressure in yields from continual buying just frankly ran out of steam ... at these levels," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

Stocks rose as financials and other economically focused sectors rallied from the selloff sparked by growth worries earlier in the week.

The Dow Jones Industrial Average rose 448.23 points, or 1.3%, to 34,870.16, while the broad S&P 500 gained 48.73 points, or 1.13%, to 4,369.55.

The tech-focused Nasdaq Composite added 142.13 points, or 0.98%, to 14,701.92.

Investors will next gauge risk appetite by assessing results of auctions of $38 billion of 10-year Treasury notes on Monday, and $24 billion of 30-year bonds on Tuesday.

"If auction demand is a little bit squishy, especially at the 10-year sale, then we could see 1.45% in a hurry," LeBas said, referring to the effect on the 10-year Treasury yield if investors resume selling.

Concerns remain that vaccination alone won't squelch the virus enough to get economies back to normal.

Pfizer (NYSE:PFE) and partner BioNTech said they plan to ask regulators to authorize a booster dose of their vaccine, based on evidence of greater risk of infection six months after inoculation and the spread of the highly contagious Delta variant.

That has stoked fears "that in the fall, we might be shutting down again," said Tom di Galoma, managing director at Seaport Global Holdings in New York.

Aligned against such fears: loose monetary policy from major central banks. But that support may vanish if inflation spikes.

Oil prices added to overnight gains as U.S inventories declined. U.S. crude was up 2.3% to $74.62 per barrel and Brent was at $75.58, up 1.97% on the day.

Treasury yields rise, U.S. stocks hit new highs; dollar weakens
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (13)
Innocent Christian
Innocent Christian Jul 10, 2021 6:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
really
SS ABCD
SS ABCD Jul 09, 2021 6:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The polishitians will control you as long as you let them! stop the madness, don't comply!!
Martin Lewis
Martin Lewis Jul 09, 2021 2:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Remember when they ended lockdowns in Texas and Florida and ended mask mandates and Biden called it "neanderthal thinking" and places like California and New York remained closed with mask mandates and then Texas and Florida did so much worse than California and New York? Oh right, that never happened, Texas and Florida did just fine and California and New York have actually done worse. Not to mention crime is up massively - including massive spike in homicides - in blue states too.
Todd Gray
Todd Gray Jul 09, 2021 2:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Maybe. But, they have broader natural herd immunity. Who's better off in the long run?
Byedin Youlost
Byedin Youlost Jul 09, 2021 1:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who believes this nonsense
Anthony Cloud
Anthony Cloud Jul 09, 2021 1:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The vacinated who claim to be “educated”
andy matalobos
andy matalobos Jul 09, 2021 1:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Only those poor educated Retrumpicans tha have been brainwashed by the biggest loser in America politics.
Byedin Youlost
Byedin Youlost Jul 09, 2021 1:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The SCAM continues
Call me Caitlyn
Call me Caitlyn Jul 09, 2021 1:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Finally some good news....crash may be near....need more and more of these recovery hopes shattered headlines fo meaningful change....Great Reset still possible....one must hope...
Byedin Youlost
Byedin Youlost Jul 09, 2021 1:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SMH
Call me Caitlyn
Call me Caitlyn Jul 09, 2021 1:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I know man it's about time....been SMH at this madness for 16 months now but reality will set on this soon...
Mike Brarey
Mike Brarey Jul 09, 2021 1:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There's just no reason why markets go up or down, this is just like listenining to the shaman's explanation on why it just rained
Whaling Trawler
Whaling Trawler Jul 09, 2021 12:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
last year we had a once in a hundred years virus and now another one back to back. it's like 200 years worth of viruses in one year
Muffin Square
MuffinSquare Jul 09, 2021 12:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's the same virus and the only reason we are unable to get rid of it is because we let it mutate by having people rejecting vaccination or wearing masks. Some people just like to fight against their own interests...
Whaling Trawler
Whaling Trawler Jul 09, 2021 12:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
ZS Beck
ZS Beck Jul 08, 2021 11:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Today Covid Tomorrow North Korea The day after Russia... They already find an explanation
John Keffalas
John Keffalas Jul 08, 2021 11:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China's tougher regulation will hurt them in the short term but will greatly help them in the long run. This increased scrutiny of tech companies will help them become a more mainstream and respected tech global powerhouse.John KeffalasAnalystWall Street Research
John Keffalas
John Keffalas Jul 08, 2021 11:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China's tougher regulation will hurt them in the short term but will greatly help them in the long run. This increased scrutiny of tech companies will help them become a more mainstream and respected tech global powerhouse.John KeffalasAnalystWall Street Research
John Keffalas
John Keffalas Jul 08, 2021 11:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China's tougher regulation will hurt them in the short term but will greatly help them in the long run. This increased scrutiny of tech companies will help them become a more mainstream and respected tech global powerhouse.John KeffalasAnalystWall Street Research
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email