Selling in U.S. government bonds picked up steam again Friday, propelling yields past recent highs and putting an end to several sessions of relative stability.
The yield on the benchmark 10-year U.S. Treasury note settled at 1.634%, its highest level since February of last year, compared with 1.525% Thursday.
Yields, which rise when bond prices fall, climbed steadily overnight despite no obvious catalyst, leaving analysts searching for explanations.
In notes to clients, some said that President Biden’s prime-time speech on Thursday night might have made investors more optimistic about the economic outlook. In the address, Mr. Biden directed states to make all American adults eligible to receive a vaccine by May 1 and said families and friends would likely be able to gather in small groups to celebrate Independence Day.
HONG KONG—As the first major economy to beat back Covid-19, China is now taking the global lead in moving to unwind its pandemic-driven economic stimulus efforts.
Unlike the U.S. and Europe, which are still flooding their economies with liquidity and spending, China has started reining in credit in some corners.
The shift puts China at the vanguard in confronting a challenge other economies will face in coming years as their economies recover: how to withdraw stimulus without snuffing out growth or causing broader market instability.
China’s policy makers have expressed concern about an overheating housing market and want to prevent bigger imbalances. They are also eager to resume a multiyear campaign to curb debt that started building during the previous global recession.