Seasonal factors propel US bond yields rally

Since the start of daily trading on Monday, US bond rates have risen due to a number of very helpful variables, including seasonal and political factors as well as economic and political considerations that contributed to generating the momentum of the current rise in those yields.

Ten-year US Treasury bond yields increased to 4.486% from the previous day’s finish of 4.402%. On the first trading day of the new week, returns dropped to their lowest level of 4.309%, while the highest level ever recorded was 4.496%.

The fact that Monday is the first day of the third quarter of 2024 suggests that the markets are still seeing settlements from massive investment funds, which involve sales and purchases of significant volumes of assets traded in the markets that represent the contents of these funds, which aim to control and diversify massive investment portfolios, is one of the seasonal factors that contributed to the rise in standard government bond yields.

According to reports, Norinchukin Bank plans to sell $63 billion worth of US Treasury notes this year, which will significantly reduce the value of these kinds of assets. The news caused the value of these bonds to decrease while their returns increased because of the inverse link between their value and returns.