U.S. Treasury yields climbed on Tuesday to start the month of December amid a big rally in risk assets.
The yield on the benchmark 10-year Treasury note jumped 7 basis points to 0.914%, while the yield on the 30-year Treasury bond rose by a similar magnitude to 1.651%. Yields move inversely to prices.
Investors monitored the Senate panel hearing with Treasury secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell to provide updates on CARES Act programs.
Mnuchin said he will discuss additional stimulus with House Speaker Nancy Pelosi on Tuesday, marking the first time the two lead negotiators have discussed the issue since October.
Bipartisan lawmakers unveiled a coronavirus stimulus package of roughly $908 billion Tuesday after months of congressional inaction on curbing the economic damage from the outbreak.
Meanwhile, Powell said in his prepared remarks that the economic outlook had become "extraordinarily uncertain," while speaking before Congress.
On the data front, growth in the U.S. manufacturing sector was slower than expected in November as employment contracted and deliveries slowed down, the Institute for Supply Management said Tuesday.
The ISM manufacturing index came in at 57.7 for November. Economists polled by Dow Jones expected a print of 58.
Money Report
Treasury yields climbed even though cases of Covid-19 continue to surge in the U.S., with confirmed infections reaching 13,541,224 on Monday, data compiled by Johns Hopkins University showed.
Auctions will be held on Tuesday for $34 billion of 52-week bills, $30 billion of 119-day bills and $30 billion of 42-day bills.
