TREASURIES-Yields lower on soft manufacturing report, virus resurgence
U.S. Treasury yields fell on Monday as a soft manufacturing report and the spread of the coronavirus Delta variant raised questions about economic growth.
The benchmark 10-year Treasury yield was down
5.5 basis points at 1.1839% in afternoon trading, extending a pattern of declines playing out since the spring.
The yield touched 1.151%, the lowest since July 20, shortly
after an Institute for Supply Management report showed July U.S. manufacturing growth slowed for the second straight month.
Dollar wavers on dovish Fed tone, mixed economic outlook
The dollar eased slightly on Monday as markets assessed how tightly to embrace risk following dovish statements from Federal Reserve policy makers last week and mixed economic data.
The dollar index =USD, which measures the currency against six major peers, was down less than 0.1% at 92.05 in the afternoon in New York after having been down about 0.2% on the day.
The index last week dropped 0.9%, the dollar’s worst week since early May, as it turned away from the previous week’s 3-1/2-month high when traders were positioning for a speedy start of Fed tapering of support for the economy.
The euro was up less than 0.1% on the day at $1.187 EUR=EBS. It showed little reaction to a Purchasing Managers Index (PMI) reading of July manufacturing that had been seen as a possible mover.
The British pound also little changed at $1.389, ahead of a Bank of England meeting later in the week.
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