Coronavirus

Treasury Yields Rise Following Pfizer Vaccine Approval

Source: NYSE

U.S. Treasury yields rose slightly on Tuesday, after U.S. regulators granted the Pfizer-BioNTech Covid vaccine full approval, potentially aiding the economic recovery.

The yield on the benchmark 10-year Treasury note rose by about 4 basis points to 1.295% at 4:25 p.m. ET. The yield on the 30-year Treasury bond added 3 basis points to 1.913%. Yields move inversely to prices.

The U.S. Food and Drug Administration on Monday gave the Pfizer-BioNTech coronavirus vaccine full approval, making it the first in the country to receive the designation.

This could see more businesses adopt vaccine mandates, helping to combat the rapid spread of the delta variant. In turn, this could boost the economic recovery, with recent data having shown a slowdown in consumer spending and sentiment amid the spread of the highly contagious delta variant.

The Federal Reserve is using the economic recovery to gauge when it will start paring back its easy monetary policy.

Central bankers from around the world are due to meet virtually on Thursday for the Fed's annual Jackson Hole symposium to discuss monetary policy.

Fed Chairman Jerome Powell will then make a speech at 10 a.m. ET on Friday morning, with investors watching for an indication as to when the U.S. central bank plans to wind down its bond purchasing program.

Auctions were held on Tuesday for $40 billion of 67-day bills and $60 billion of 2-year notes.

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