January 20, 2026
Yields higher as trade concerns rise
Over in bond land, Treasury yields are mostly higher before the opening bell Tuesday following an escalation in tensions over Greenland as President Donald Trump threatened tariffs on countries opposing his plans to take over the island and European nations weighed responses. Investors are also looking forward to major data releases later this week, including November’s personal income and outlays data and preliminary January purchasing managers’ indexes, due Thursday and Friday, respectively. As of 6:55 AM ET, the yield on the 10-year note is rising seven basis points (0.07%) to 4.29%, while the 30-year bond yield is increasing nine basis points (0.09%) to 4.93%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 3.59%.
Treasury yields were higher on Friday as December’s industrial production rose more than projected while capacity utilization rose to 76.3%. Meanwhile, the National Association of Home Builders’ Housing Market Index unexpectedly declined in January. The yield on the 10-year note was up five basis points (0.05%) to 4.22%, while the 30-year bond yield rose four basis points (0.04%) to 4.84%. The yield on the two-year note increased three basis points (0.03%) to 3.59%.
On the data front, the Federal Reserve Bank of Philadelphia’s Nonmanufacturing Business Outlook Survey for January will be released today.
In the auction space, the U.S. Treasury is set to issue $89 billion in 13-week bills, $77 billion in 26-week bills, $85 billion in six-week bills, and $50 billion in 52-week bills.
Municipal Market Commentary
None at this time.
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