US Treasury yields fluctuate ahead of Powell testimony

07/17/2018

Federal Reserve Chair Jerome Powell is expected to deliver his semiannual monetary policy report to the Senate Banking Committee on Tuesday.
The U.S. Treasury will auction $26 billion in 52-week bills and $45 billion in four-week bills.

U.S. government debt prices hovered above and below the flat-line on Tuesday.

The yield on the benchmark 10-year Treasury note was higher at around 2.858 percent at 6:25 a.m. ET, while the yield on the 30-year Treasury bond was slightly lower at 2.962 percent. Bond yields move inversely to prices.

Federal Reserve Chair Jerome Powell is expected to deliver his semiannual monetary policy report to the Senate Banking Committee on Tuesday. This will be Powell’s second testimony before Congress since being appointed head of the central bank in February.

Elsewhere, Kansas City Fed President Esther George will attend the 2018 Agricultural Symposium in Kansas City, Missouri. Both speeches will be watched closely for any comment on the state of the U.S. economy.

In data, the business leaders’ survey is due out at 8:30 a.m. ET, followed by industrial production at 9:15 a.m. ET and the NAHB/Wells Fargo Housing Market Index at 10 a.m. ET. Treasury International Capital (TIC) data is scheduled for 4 p.m. ET.

The U.S. Treasury will auction $26 billion in 52-week bills and $45 billion in four-week bills.

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

On the political front, investors are likely to be digesting the latest reaction to Monday’s summit between President Donald Trump and his Russian counterpart Vladimir Putin in Helsinki, Finland.

Trump blamed both Russia and the States for the countries’ strained relationship, adding that Putin was “extremely strong and powerful in his denial” when it came to Moscow’s alleged meddling in the 2016 U.S. election.

Elsewhere, investors will be keeping a close eye on the ongoing trade spat between the U.S. and major economies including China and the European Union.

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