10-Year T-Note Futures Market News and Commentary
Mar 10-year T-notes (ZNH21) on Friday closed down -9 ticks. The 10-year T-note yield rose +6.3 bp to 0.969%.
Mar 10-year T-note prices on Friday sold off to a 3-week low, and the 10-year T-note yield rose to an 8-1/2 month high of 0.984% as a rally in stocks to record highs reduced the safe-haven demand for T-notes. Rising inflation expectations also weighed on T-note prices Friday after the 10-year breakeven inflation expectations rate climbed to a new 1-1/2 year high. T-notes sank to their lows after Friday's weaker-than-expected U.S. Nov payroll report bolstered expectations for additional stimulus that would need to be financed with more Treasury security debt.
Stocks on Friday rallied with the S&P 500 and Dow Jones Industrials posting new record highs, undercutting T-note prices. Stocks rose on speculation that positive Covid vaccine developments can help sustain an economic recovery next year.
Also, the prospects improved for passage... Read more