10-year Treasury yield rises to highest level in a week
U.S. Treasury yields climbed Friday after the Federal Reserve unveiled new measures to help small firms get through the Covid-19 pandemic.
The yield on the benchmark 10-year Treasury note gained 2 basis points to 0.863%, its highest level since Oct.22. The yield on the 30-year Treasury bond was also higher at 1.644%. Yields move inversely to prices.
Yields turned slightly higher after the Fed announced it has lowered the barriers on its lending program for smaller businesses. The central bank is reducing the minimum loan size to $100,000 from $250,000 and will ease restrictions on debt for companies already participating in the Paycheck Protection Program.
On the data front, U.S. consumer spending topped estimates for September. The Commerce Department said on Friday that spending rose 1.4% last month, while analysts forecast growth of 1%, according to Refinitiv.
Investors also digested better-than-expected third-quarter economic data from the U.S. on Thursday.
Coronavirus cases globally reached a single-day record of 500,000 on Thursday. Meanwhile, The U.S. continued to set new highs for Covid-19 infections this week, with Thursday marking a record 88,521 daily new cases. Hospitalizations are also climbing in 41 states.
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