US Treasury yields edge down as Omicron variant fears grow

By Ishika Dangayach on Dec 17, 2021 | 04:37 AM IST

The 10-year Treasury note decreased by more than 3 basis point
The 30-year Treasury bond yield increased to 1.857 percent

The Treasury yield in the United States fell early Friday after a steady increase due to growing concerns over the rapid spread of the Omicron coronavirus strain.

At 4:28 a.m. ET, the yield of the benchmark 10-year Treasury note decreased by more than 3 basis points to 1.421 percent. The 30-year Treasury bond yield increased to 1.857 percent.

President Joe Biden of the United States warned on Thursday that the Omicron is spreading more quickly in the United States, that it could be a winter of severe disease and death for those who have not been vaccinated.

Meanwhile, California and New York are once again compelling people to wear masks in all indoor public places across the state.

According to Mark Ghaly, secretary of the California Health and Human Services Agency, masks will be mandatory in all public indoor locations for one month beginning last Wednesday and ending January 15.

Fed Policy Meeting

The Federal Reserve said on Wednesday that it will stop buying bonds in March 2022 and gradually raise interest rates by the end of the year, indicating that the inflation objective has been fulfilled.

Following a two-day policy meeting, the central bank said that it will begin purchasing $60 billion in bonds per month in January and finish the program in March.

That's half of what it purchased in November before the taper, and $30 billion less than it was buying in December.

Jobless Claims

New claims for unemployment in the United States have increased to 206,000, signaling that the job market is trying to recover from the coronavirus pandemic.

The Labor Department reported on Thursday a substantial increase of 18,000 from the previous week which was revised up by 4,000 from 184,000 to 188,000.

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