Treasury yields fall as investors anticipate Brexit trade deal

U.S. government debt prices rose on Thursday amid hopes of a Brexit trade deal being reached between the U.K. and the European Union.

The yield on the benchmark 10-year Treasury note fell to 0.948%, while the yield on the 30-year Treasury bond traded lower at 1.689%. Bond yields move inversely to prices.

Britain and the European Union are said to be on the cusp of striking a free trade agreement on Thursday. It comes after months of political wrangling over key sticking points such as fisheries.

U.K. Prime Minister Boris Johnson was due to speak with European Commission President Ursula von der Leyen at around 7 a.m. London time. Johnson is then expected to hold a news conference an hour later.

Stateside, President Donald Trump vetoed a sweeping defense bill Wednesday, breaking with the Republican-led Senate. The move came after he threatened not to sign Congress’ $900 billion Covid relief package, calling it an unsuitable “disgrace.”

There are no major economic data released scheduled for Thursday. Auctions for $30 billion in 4-week Treasury bills and $35 billion in 8-week bills are set to take place.

Source: CNBC