Yields on US bonds rise after gains against omicron and higher stocks – Market Research Telecast

Por Ross Kerber

Dec 23 (Reuters) – The yield curve on U.S. Treasuries steepened on Thursday after equity markets opened higher on optimism about a less-than-feared impact on public health from the omicron variant of the coronavirus.

* The 10-year benchmark yield was up 3.3 basis points to 1.4909% in morning trading, ending early before the holiday weekend.

* James Barnes, director of fixed income at Bryn Mawr Trust, said the rise appeared to be tied to early gains in major Wall Street indices, after data suggested the omicron variant of the coronavirus was less severe than it was. it was feared.

* US regulators also authorized the antiviral pill from Merck & Co.

* Inflation expectations probably won’t change much until there is more guidance from the US Federal Reserve next month, Barnes added. Until then, he said, “it appears that the bond market is taking the direction of the information on omicron.”

* Earlier in the day, investors pushed bond prices higher after weekly claims for unemployment assistance in the United States remained below pre-pandemic levels.

* The part of the US Treasury yield curve that measures the difference between two-year and 10-year papers, viewed as an indicator of economic expectations, stood at 81 basis points, about two basis points above closing Wednesday.

* The two-year US Treasury yield, which normally tracks interest rate expectations, was up 1.4 basis points at 0.6812%.

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