US government bond yields stagnate despite hot economic data
May 6, 2021 | Brian Scheid | S&P Global Marketing Intelligence
A stagnant U.S. government bond market in the face of a warming economy in recent days has fixed-income analysts wondering if the peak in yields has already come and gone.
Less than a month ago, analysts expected record supply and rapidly improving economic data to push the 10-year Treasury yield to 2% for the first time since July 2019. The benchmark 10-year yield serves as both a broad indicator of investor confidence and a proxy for mortgage rates.
But bond yields, which move inversely to bond prices, have instead slipped, with the 10-year U.S. Treasury yield settling at 1.59% on May 5 and trading as low as 1.56% on May 6, down 18 basis points from its March 19 peak.
