US Treasury yields rise on reports Biden to propose $2 trillion stimulus

The US Treasury yields jumped on Thursday after reports stated that the US President-elect Joe Biden is considering a $2 trillion stimulus – significantly higher than $1.3 trillion recommended by Senator Chuck Schumer.

The 10-year yield rose from 1.076% to 1.11%, putting a bid under the US dollar. Meanwhile, the two-year yield rose from 0.143% to 0.157%. 

Bonds fell, pushing yields to multi-month highs last week after Goldman Sachs said Biden would unveil a $750 billion fiscal stimulus plan, including some $300 billion in stimulus cheques to Americans. 

While Biden is now reportedly planning to propose a much bigger spending package of $2 trillion, it is still less than the $3 trillion figure disclosed by Axios last week.