• Fri. Dec 3rd, 2021

Treasury yields rise forward of Fed Chair Powell’s testimony

ByHanna

Jun 22, 2021

The ten-year U.S. Treasury yield rose to 1.50% on Tuesday morning, as traders awaited Federal Reserve Chairman Jerome Powell’s testimony to Congress on the central financial institution’s response to the coronavirus pandemic.

The yield on the benchmark 10-year Treasury notice climbed lower than foundation level to 1.501% at 4:55 a.m. ET. The yield on the 30-year Treasury bond rose to 2.115%. Yields transfer inversely to costs.

Powell is about to talk earlier than the Home Choose Subcommittee on Coronavirus Disaster at 2 p.m. ET.

Within the ready feedback, which had been launched Monday night forward of the testimony, Powell mentioned that whereas the “financial system has proven sustained enchancment,” it nonetheless faces continued threats from the Covid-19 pandemic.

“Widespread vaccinations have joined unprecedented financial and financial coverage actions in offering robust assist to the restoration. Indicators of financial exercise and employment have continued to strengthen, and actual GDP this 12 months seems to be on monitor to submit its quickest fee of improve in a long time,” Powell mentioned. “A lot of this fast progress displays the continued bounce again in exercise from depressed ranges.”

Powell’s testimony follows the Fed’s coverage assembly final week, through which it raised inflation expectations and signaled an rate of interest improve might occur ahead of anticipated.

Inventory picks and investing traits from CNBC Professional:

Chris Watling, CEO of Longview Economics, informed CNBC’s “Squawk Field Europe” on Tuesday that the Fed had been “fairly resolute” about retaining financial coverage “looser for longer.”

Nonetheless, he mentioned {that a} tightening of the labor market was “clearly a potential candidate” to “upset this applecart.”

In the meantime, present house gross sales knowledge for Could is about to be launched at 10 a.m. ET.

Auctions are because of be held Tuesday for $40 billion of 42-day payments and $60 billion of 2-year notes.

CNBC’s Jeff Cox contributed to this market report.

https://www.cnbc.com/2021/06/22/us-bonds-treasury-yields-rise-ahead-of-fed-chair-powells-testimony.html