NEW YORK (dpa-AFX) – US government bond prices turned negative on Monday. The futures contract for ten-year bonds (T-Note Future) recently fell by 0.16 percent to 115.25 points. The yield on ten-year paper rose to 3.50 percent.
Stockbrokers justified the swing into the red with the hope of a solution to the dispute over the debt ceiling in the United States. Against this background, the US stock exchanges have recently gained some ground. However, the Republican chairman of the House of Representatives was not very optimistic. “I still think we’re far apart,” said Kevin McCarthy. He accused President Joe Biden’s government of not taking the matter seriously and not really wanting to seek an agreement.
Initially, weak economic data supported government bonds. The regional leading indicator for the New York region had deteriorated much more than expected. The Empire State Index fell 42.6 points. This is the sharpest drop since April 2020. The indicator is now also signaling a slowdown in economic activity. A weakening of the economy in the USA tends to speak against further interest rate hikes by the US Federal Reserve./la/ngu