Treasury Yields Climb on Post-Brexit Trade Deal Hopes
- Date: 23-Dec-2020
- Source: The Wall Street Journal
- Sector:Economy
- Country:Middle East
Treasury Yields Climb on Post-Brexit Trade Deal Hopes
U.S. government-bond prices fell Wednesday as investors reacted to signs that U.K. and European Union officials were closing in on a new trade accord that would avoid tariffs being imposed at the start of next year.
In recent trading, the yield on the benchmark 10-year U.S. Treasury note was 0.960%, according to Tradeweb, compared with 0.917% Tuesday.
Yields, which rise when bond prices fall, initially declined early in the overnight session after President Trump criticized the roughly $900 billion coronavirus relief deal passed by Congress, raising questions about whether he might veto the legislation.
Yields, though, later reversed course and rose sharply in response to headlines that the U.K and EU might reach a trade deal as early as Wednesday. Absent a deal, tariffs would be applied Jan. 1 for the first time in nearly 50 years on some trade between the U.K. and the EU, causing an unwelcome economic disruption as countries are struggling with the coronavirus pandemic.
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