US Treasury Yields Surpass 1.4% Despite Powell's Remarks... Nasdaq Falls Again

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The yield on the U.S. 10-year Treasury note surpassed 1.4%. Despite Federal Reserve Chairman Jerome Powell emphasizing the maintenance of zero interest rates and asset purchase programs the day before, it once again exceeded the previous high. The U.S. stock market, centered on the Nasdaq, is showing a downward trend again.

On the 23rd (local time), the yield on the U.S. 10-year Treasury note was recorded at 1.425%. It surged by 0.06 percentage points in an instant compared to the previous day. Although it had fallen to 1.342% the day before, it recorded an upward trend again. This is the highest level since February last year.

The 30-year Treasury yield also rose vertically to 2.258%.

The 10-year Treasury yield approached the average dividend yield of S&P 500 constituent stocks. This is interpreted as a factor worsening the risk appetite for stock investment.

The sharp rise in yields on this day is also interpreted as being influenced by the U.S. Food and Drug Administration (FDA) researchers supporting the emergency use authorization of Johnson & Johnson's COVID-19 vaccine.

Attention is focused on how Chairman Powell will respond amid the sharp rise in Treasury yields. Chairman Powell is scheduled to attend a House hearing on this day.

With the sharp rise in Treasury yields, the U.S. stock market started again on a weak note. The Nasdaq index, which is directly affected by the rise in yields, started down 0.52%.

Tesla's stock price, which had plunged 13% during the previous day's session, started trading up 2.9%.