Investing.com investing.com 11 Jan, 2021 11:30 am

Treasury Yields Soar On Expected Stimulus; Borrowing Keeps Eurozone Yields Low

Treasury Yields Soar On Expected Stimulus; Borrowing Keeps Eurozone Yields Low
Bonds Analysis by Investing.com (Darrell Delamaide/Investing.com) covering: XAU/USD, Gold Futures, SPDR® Gold Shares, United States 2-Year. Read Investing.com (Darrell Delamaide/Investing.com)'s latest article on Investing.com

A heavy slate of Treasury auctions this week calls for sales of $58 billion of three-year notes, $38 billion of 10-year notes, and $24 billion of 30-year bonds, as higher yields are expected to whet investor appetites.Analysts expect the yield curve to steepen as the US and other issuers shift their borrowing to longer-term maturities, locking in low rates for longer periods, and institutional investors flock to the higher yields.Analysts expect Democrats to pass a stimulus on the order of another $900 billion to $1 trillion on top of the $900 billion passed in December.Bond investors kept their eye on the ball as the prospect of a Democratic president and Democratic control of Congress makes further stimulus and other government spending a near-certainty.

France, which is expected to borrow €260 billion in 2021, kicked off the year with an offering of €11 billion in 10- , 20- , and 30-year bonds, with the longer-dated maturities priced for a positive yield.Spain, Germany, Ireland, and Slovenia all came to the market in the first week of the New Year.

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