Treasuries sell off as Joe Biden eyes $2 trillion stimulus package, while US stocks set to edge higher

Treasuries sell off as Joe Biden eyes $2 trillion stimulus package, while US stocks set to edge higher

Treasury prices fell and yields rose after a CNN report said Joe Biden could launch a stimulus package worth $2 trillion, causing investors to brace for more bond issuance and higher inflation.

US stocks were set for a mixed start as markets awaited the details of Biden's plan and mulled over the spread of coronavirus.

Chinese stocks tumbled as coronavirus cases rose, but oil prices climbed as traders looked towards a vaccine-driven economic recovery.

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US Treasury prices slipped on Thursday after a CNN report said President-elect Joe Biden was mulling a $2 trillion stimulus bill, while stocks were set to open slightly higher on Wall Street.

The yield on the 10-year US Treasury note - which moves inversely to its price - rose 1.2 basis points to 1.1%. Yields were up on Treasuries from the 3-year note to the 30-year bond, as investors bet more stimulus would lead to more issuance of government debt and higher inflation.

The S&P 500 was set to open slightly higher, with futures up 0.22%. Dow Jones futures were 0.31% higher but Nasdaq futures were up just 0.02%. The second impeachment of US President Donald Trump did