NEW YORK (Reuters) – The benchmark yield on U.S. Treasuries rose for a seventh consecutive session on Tuesday as oil hit its highs in nearly a year and stocks fell to the downside, with eyes on U.S. earnings and Joe Biden’s grand opening next week.
The 10-year U.S. yield peaked in March as prices came under pressure before a $ 38 billion bid later from the treasure. The yield has increased with each session this year based on expectations of a massive stimulus package from the upcoming democratic administration.
“The Georgia Senate ballot election (which gave Democrats the majority) really changed the landscape quite significantly, as there is now potentially very significant additional stimulus,” said Tom Simons, economist for the country. money market at Jefferies in New York.
Brent crude oil prices hit their highest levels since February as tighter supply and expectations of a decline in U.S. inventories offset concerns over rising coronavirus cases globally. Saudi Arabia said it plans to cut production by an additional 1 million barrels per day in February and March.
“Saudi Arabia, in particular, is ensuring, through its further voluntary production cuts, that the market is insufficiently supplied,” said Commerzbank’s Eugen Weinberg.
Brent crude was $ 56.46, up 1.44% on the day, while US crude oil recently climbed 1.36% to $ 52.96 a barrel.
On Wall Street, stocks slipped but were not far off yet from record. The Dow was down 64.17 points, or 0.21%, 25.88 points, or 0.08%, to 30,944.52, the S&P 500 lost 16.01 points, or 0.42%, to 3,783.6 and the Nasdaq Composite fell 47.26 points, or 0.36%, to 12,989.17.
The pan-European STOXX 600 index was up 0.05% and the MSCI index of stocks around the world fell 0.10%.
Democrats said Tuesday they will give President Donald Trump one last chance to leave office days before his term expires or face an unprecedented second impeachment for his supporters’ deadly assault on the U.S. Capitol on Jan.6. . [nL1N2JN11F]
An impeachment trial could proceed even after Trump leaves office. Some Democrats have expressed concern that a trial could thwart Biden’s agenda, slowing the confirmation of his appointees and distracting from legislative priorities such as a new coronavirus aid package.
“Even if (additional stimulus) is delayed, it will be a matter of days, maybe weeks, not months. The question is the shape and form of it, ”said Keith Buchanan, GlobAlt’s portfolio manager in Atlanta.
The US government ten-year debt benchmark fell 11/32 for a yield of 1.1718%, from 1.134% late on Monday.
The US dollar, which hit a low of more than 2.5 years against a basket of par earlier this month, remained little changed.
The dollar index was down 0.146%, with the euro up 0.15% to $ 1.2167.
The Japanese yen strengthened 0.14% against the greenback to 104.11 per dollar, while the pound was last traded at $ 1.3624, up 0.81% on the day.
Spot gold was down 0.3% to $ 1,839.60 an ounce. Silver gained 1.27% to $ 25.24.
Bitcoin fell 1.78% to $ 34,824.44.
Reporting by Rodrigo Campos; additional reports by Devik Jain and Medha Singh in Bengaluru, Saqib Iqbal Ahmed, Karen Brettell and Herbert Lash in New York and Alex Lawler in London; Editing by Dan Grebler