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The rally in the US Treasury yields may gather pace with President Joe Biden on the verge of getting his massive fiscal stimulus program approved by Congress.  

The US Senate passed President Joe Biden’s $1.9 trillion stimulus plan on Saturday, paving the way for $1,400 checks and jobless aid, according to The New York Times. The bill now heads back to the House for clearance.  

The risk sentiment looks to have improved somewhat with progress on the fiscal stimulus front. The dollar is trading soft against most majors and the futures tied to the S&P 500 are trading 0.5% higher.  

The relief, however, could be short-lived, as some analysts expect the stimulus to put upward pressure on yields.  

“The news is likely to put upwards pressure again on yields at the start of the week as the Biden administration’s $1.9 trillion proposal is close to being passed in full, rather than being reduced as earlier expected,” said Mansoor Mohi-uddin, chief economist at Bank of Singapore Ltd, according to Bloomberg.  

The US 10-year yield is seen at 1.58% at press time, having clocked a 12-month high of 1.622% on Friday on the back of an upbeat Nonfarm payrolls report.