Yields Up Slightly as Equities Slump

Efforts to get the administration’s $1.9T covid-relief package to the finish line will be front and center this week. In early trading, Treasury prices are coming off their overnight lows but yields have still moved up slightly. The Ten-Year is yielding around 1.36% with the Long Bond around 2.14%. The Two-Year is still steady at around 10 basis points. DJIA futures are point to a triple-digit-down opening. Crude oil is up slightly more than a half-dollar to $59.84 while gold $16 rally has pushed that price back up to $1,800.

Earlier this morning, the Chicago Fed announced that its National Activity Index beat estimates of a 0.5 January reading by coming in at 0.66. December’s level of 0.52 was revised to 0.41. A little later, investors will see a report from the Conference Board that may show that its Leading Index rose by 0.4% in January and another report from the Dallas Fed that its Manufacturing Index might have fallen to 6.8 this month from January’s value of 7. Jerome Powell testifies before the Senate Banking Committee tomorrow.