U.S. government bonds

US ten-year government bond yields exceeded 1.37% p.a., reaching their highest level in a year. This was driven by investor fears of an acceleration in the pace of consumer price increases on the back of stronger economic activity thanks to a massive state aid programme.

The yield on ten-year US Treasuries stood at 1.372% p.a. at 16:13 Moscow time against 1.34% on Friday.

Meanwhile, the head of the Federal Reserve Bank (FRB) of New York, John Williams, disagreed with the view that a massive stimulus measure or rise in asset prices could undermine the recovery from the coronavirus pandemic. He said the economy was still "in a very deep hole" and would take a long time to fully recover.

In an interview with CNBC, he said: "I'm not very concerned about stimulus measures or fiscal support at the moment. I really want to see the economy getting back to full function as soon as possible".

Some economists are calling US President Joe Biden's proposed $1.9 trillion stimulus package too sweeping, fearing its passage could overheat the economy.

UST yields have been rising steadily this month, raising worries that it could stall economic growth as borrowing costs rise, MarketWatch says. The head of the Federal Reserve Bank of New York believes that this rise reflects increased optimism about the outlook for the economy, "so it is not a cause for concern".