Treasury yields move higher as investors monitor economic data, auctions and Fed speeches
U.S. government debt prices were lower on Tuesday morning, as investors closely monitored the potential for a new coronavirus stimulus package ahead of next month’s presidential election.
At around 2:55 a.m. ET, the yield on the benchmark 10-year Treasury note was higher at 0.7640%, while the yield on the 30-year Treasury bond was also higher at 1.5529%. Yields move inversely to prices.
It comes after Treasury Secretary Steven Mnuchin and U.S. House of Representatives Speaker Nancy Pelosi “continued to narrow their differences” during a nearly one-hour phone call on Monday, according to the California Democrat’s spokesman Drew Hammill.
Pelosi hoped for “clarity” by the end of Tuesday on whether a stimulus bill can be passed before the Nov. 3 election, Hammill said via Twitter.
President Donald Trump’s administration and Democratic leaders appear to be far apart on a range of key issues.
On the data front, housing starts for September and building permits for September will both be released at 8:30 a.m. ET, with Philly Fed non-manufacturing data for October set to follow slightly later in the session.
The U.S. Treasury is set to auction $30 billion of 119-day bills and $30 billion of 42-day bills on Tuesday.
Meanwhile, Fed Vice Chair Randal Quarles, Chicago Fed President Charles Evans, Fed Governor Lael Brainard and Atlanta Fed President Raphael Bostic are all scheduled to comment on the world’s largest economy during separate online events.
