US Treasury yields slip ahead of data; politics in focus

U.S. government debt prices were higher on Wednesday.

The yield on the benchmark 10-year Treasury note was lower at around 2.840 percent at 5:45 a.m. ET, while the yield on the 30-year Treasury bond was lower at 3.086 percent. Bond yields move inversely to prices.

On Tuesday, economic data is set to dominate investor sentiment. At 7 a.m. ET, mortgage applications are due, followed by retail sales and producer price index (PPI) data at 8:30 a.m. ET. Business inventories will come out at 10 a.m. ET.

No major auctions from the U.S. Treasury are due, but investors will likely still reflect on domestic political news. On Tuesday, President Donald Trump fired Secretary of State Rex Tillerson and then announced that he would nominate CIA Director Mike Pompeo as Tillerson’s replacement.

Concerns around trade continue to linger. Last week, Trump signed two declarations to impose tariffs on steel and aluminum imports — both are expected to take effect in the coming weeks. While Canada and Mexico exempt from the deal, fears over a potential trade war remain, as investors worry that countries around the world may impose their own retaliatory tariffs.

Not a Scientific Survey. Results may not total 100% due to rounding.

A source told CNBC on Tuesday that Washington is contemplating a trade package that would include investment restrictions, indefinite tariffs and potentially even visa restrictions on Chinese travelers.

Elsewhere, the president of the European Central Bank, Mario Draghi, told an audience Wednesday that the bank’s policy would remain prudent despite the institution being more confident on where inflation was heading.

—CNBC’s Silvia Amaro contributed to this report

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