10-year Treasury yields reached multi-year highs due to strong economic data

Dollar was pulled down

The benchmark on 10-year Treasury yields touched fresh multi-year highs on Wednesday after jumping as high as 3.1 percent for the very first time since for seven years.

The yields on the benchmark 30-year Treasury bond was higher on the day by 3.22 percent. Meanwhile, the 10-year Treasury yields advanced in Wednesday’s afternoon trading after adding to its sizable climb these past two days. The rates stayed on their default level by approximately 10 basis points since Monday.

The two-year Treasury yields also reached multi-year highs of more than 2.593 percent. This is to date its best level since August 11, 2008. It is already given that bond yields move inversely to their prices. The release of economic figures this week has also influenced the movement of yields.

Housing edged down by 3.7 percent to an annual rate of about 1.287 million units for the month of April, according to the department on the same day. Still, released figures for the month of March was revised to show begins increasing to a 1.336 million-unit rate, rather than the 1.319 million-unit rate released previously.

A Reuters poll predicted that building permits will fall as low as 1.35 million units, but it only ended up 1.8 percent lower to a rate of 1.352 million units. Meanwhile, factory and retail sales data has also strengthened yields and U.S. indices, regardless of concerns that it could undercut stock valuations.

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