President Biden travels to Pennsylvania to plan a $30 stimulus package
The US 10-year Treasury yield rose to a 14-month high on Tuesday as strong growth and inflation expectations sparked divestment in the bond market.
According to Bloomberg data, 10-year yields rose 0.05%, more than 1.76% from yesterday’s closure levels.
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The recent round of sales stems from investors’ positive outlook on the US vaccine rollout and additional stimulus packages.
The US bond market has led the global withdrawal of government debt since the beginning of the year. Investors are worried that the Fed will heat up the economy and will raise inflation along with enormous spending and monetary stimulus.
Debt indicators issued by developed countries’ governments have declined by 5% on a total revenue basis since January.
Joe Biden said Monday that by mid-April, 90% of adults will have access to the vaccine on sites within five miles of their home address. The president will also travel to Pennsylvania on Wednesday to plan a $30 stimulus package following a stimulus payment of 1.9trn this month.
Rupert Thompson, chief investment officer at wealth manager Kingswood, said the scale of “large” stimuli in the US and globally has “stood tensions over inflation, and behind the recent sale of government bonds. There is,” he said.
