Treasury yields rise as strong earnings lift risk appetite

The yield on the benchmark 10-year Treasury note rose 1.45% to about 2.589%, its highest level since March 20. The yield on the 30-year Treasury bond rose 0.92% to 2.9923%. Bond yields move inversely to prices.

Investors are finding confidence in a slew of first-quarter numbers that are better than expected. UnitedHealth Group and Johnson & Johnson, both Dow components, reported strong quarterly earnings on Tuesday, boosting their shares in pre-market trading. Bank of America and BlackRock’s results also beat expectations.

Industrial production fell 0.1% in March, below consensus estimate, the Federal Reserve said on Tuesday. Capacity utilization also fell to 78.8% in March, the lowest rate since last July.

“The only real new information out during the New York trading session was disappointing economic data, which failed to spur a reversal of the price action,” said Jon Hill, rates strategist at BMO. “Rates across benchmarks are now nearly back where they were pre-March FOMC.”

On the trade front, the U.S. and Japan have started negotiations in Washington on Monday, as President Trump seeks to reduce Japan’s deficit with the U.S. Elsewhere, China and U.S. officials are reportedly close to striking an agreement.



There are no Treasury auctions planned.