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US Treasury yield rises as inflation expectations soar

US Treasury yield rises as inflation expectations soar

The yield on US Treasury bonds witnessed a noticeable rise in light of expectations of an acceleration of the economic recovery, thanks to the stimulus package introduced by President Joe Biden's administration, in addition to the rise in inflation expectations to their highest levels since 2014.

The yield on US Treasury bonds for 10 years rose to the level of 1.2%, after expectations that members of the US Congress will approve a stimulus package worth $1.9 trillion.

The yield on the 10-year note continued to rise to its highest level since last March at 1.2%, recording a 30-point increase since the end of 2020. While the 30-year yields touched the 2% level for the first time since mid-February 2020.

The government jobs report issued by the United States of America at the end of last week showed that the economy created fewer than expected jobs, which shows the extent to which the US economy needs stimulation during the current period.

Inflation expectations have risen steadily in recent weeks, and on Monday the base level for inflation expectations rose above 2.20%, the highest level since 2014.

As for the US dollar index, it returned to the average rise today after the big decline it witnessed last Friday after the employment sector data, to trade at the level of 91.17 after hitting the highest level at 91.21 and the session opened today at the level of 91.10. 

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