10-year Treasury yield rises above 0.7% after better-than-expected economic data

Treasury yields climbed on Monday as stronger-than-expected economic data signaled a recovering economy amid the coronavirus pandemic 


The yield on the benchmark 10-year Treasury note rose 3 basis points at 0.700% and the yield on the 30-year Treasury bond was up at 1.467%. Yields move inversely to prices.

Data on Monday showed the Institute for Supply Management's nonmanufacturing index rose more than expected in June. The index jumped to 57.1 last month, topping a Dow Jones estimate of 50.1. The gauge signaled the first expansion within the sector in three months and also posted the biggest month-over-month increase on record. 

Investors are still closely monitoring the continued rise in new coronavirus cases in the U.S.

In the first four days of July, Reuters reported 15 U.S. states had record increases in new cases of the coronavirus. To date, the U.S. has recorded 2.8 million cases of the virus, with 129,947 deaths, according to data compiled by Johns Hopkins University.

In a Fourth of July speech, President Donald Trump promised to "safeguard" American values from enemies within, stoking national divisions on a day typically meant for unity and celebration.

Trump did not mention the number of fatalities due to the coronavirus in his speech, with almost 130,000 people known to have died from Covid-19 in the U.S. That is far more than any other country in the world.

The U.S. Treasury will auction $54 billion of 13-week bills and $51 billion of 26-week bills on Monday.