Signs of Recovery Signal Treasury Yield Increase

According to Bloomberg, the 10-year Treasury notes fell in morning trading on Monday after reports about expansion in manufacturing, a clear signal that the world’s largest economy is showing signs of recovery. However, the two-year notes remained unchanged.

Yield on 10-year Treasury note increased 0.02 percentage points to 3.72 percent. The price declined 1.25 percent to 99 6/32.

Although there are signs of an economic recovery, the FOMC (Federal Open Market Committee) is expected to continue its stance on keeping interest rates close to zero for an “extended period” as it believes that inflation is still not a major worry and the recovery is still in a nascent stage.