US bond yields continue to rise as stocks lose momentum

US Treasury bond yields have continued to rise since the beginning of daily trading on Tuesday, driven by anticipation of many batches of economic data, statements by Fed officials, and earnings reports, as this week’s economic agenda is busy with many influences on price movement.

Despite its tendency to rise, the stock market lost upward momentum after it reached an area close to record levels, with traders awaiting a barrage of economic data and statements from policymakers at the Fed that would give clues about the future path of interest rates.

The decline in stocks was one of the most important reasons behind the rise in US Treasury bond yields, as this anticipation leaves the door open to speculation of a rate cut soon.

The US data on Tuesday highlighted the weakness in the performance of the US economy, which was reflected in readings of orders for durable goods, which suffered a sharp deterioration last January.

The durable goods orders index readings deepened their decline last January, settling at -6.1%, compared to the previous month’s reading, which recorded -0.3%, which was worse than market expectations, which indicated -4.5%.

Yields on ten-year US Treasury bonds rose to the level of 4.312% compared to the last daily close, which recorded 4.283%, in addition to a rise in US Treasury bond yields for two years and five years.

Zoom, the operator of the online meeting application, achieved profits that greatly exceeded financial market expectations, according to the company’s financial performance report for the fourth quarter of last year, the details of which were announced on Tuesday, which added to the upward momentum enjoyed by benchmark bond yields.