Long U.S. Treasury yields ended last week slightly higher, while shorter-maturity yields finished lower.
Stocks rose again last week, marking the first time since mid-April that equities enjoyed gains for two consecutive weeks.
U.S. Treasury yields rose last week, as investors expressed optimism regarding developing a COVID-19 vaccine. The first 20-year Treasury issue in decades was auctioned on Wednesday, with the issue’s yield ending the week slightly lower.
Stocks reversed course last week, with the S&P 500 Index rising 3.3%. Investors were encouraged by progress with vaccine trials, indications that the Federal Reserve would remain accommodative for the foreseeable future and preliminary signs that economic growth was starting to recover.
Stocks sank last week amid some horrific retail sales data and Federal Reserve Chair Jerome Powell’s downbeat economic assessment.
Treasury yields fell last week, led by longer maturities. Markets focused on a record monthly decline in core consumer goods, despite better-than-expected sentiment and manufacturing data.
Longer maturity Treasury yields increased and shorter maturity rates fell again last week, as increases in Treasury auction sizes were much larger than expected.
After falling the previous two weeks, stock prices rebounded last week due to increasing optimism over prospects for re-opening the economy.
10- and 30-year Treasury yields rose last week while shorter maturity rates fell, steepening the Treasury yield curve.
Stocks started the week in a positive direction before dropping sharply on Thursday and Friday. We think this sort of volatility is likely to persist for some time.
U.S. Treasury yields fell for maturities of seven years and longer, while shorter maturities rose slightly. The yield curve flattened as a result. While markets largely shrugged off weak economic data, plummeting oil prices stoked a negative risk tone.