US Treasury yields fell on Wednesday morning, ahead of a speech by Federal Reserve Chairman Jerome Powell later that day.
The yield on the 10-year Treasury benchmark rose slightly to 1.043% at 4 am ET, while the yield on the 30-year Treasury bond rose to 1.803%. Yields move in the opposite direction to prices.
US government bond yields were steady at the start of the trading session, with Powell expected to provide an update on the central bank’s economic outlook and monetary policy amid the pandemic.
Many investors hope that Powell and his colleagues will move away from the word “discount,” the process by which the central bank will reduce its monthly bond purchases that have helped keep the financial system drifting in cash and encouraged investors to take risks. despite rich equity valuations.
The Fed is set to launch the interest rate decision at 2:00 p.m. ET, and Powell will speak to reporters at 2:30 p.m.
The launch of coronavirus vaccines has helped lift the International Monetary Fund’s global economic outlook, which was launched on Tuesday. The IMF now forecasts the global economy to grow 5.5% in 2021, 0.3% higher than it predicted in October.
December data for durable goods orders will be released Wednesday at 8:30 AM ET.
Weekly data on changes in EIA stocks for gasoline, crude oil, Cushing’s crude oil and distillate are due at 10:30 AM ET.
Auctions will take place on Wednesday for $ 25 billion for 105-day bills, $ 30 billion for 154-day bills and $ 28 billion for two-year floating-rate banknotes.
– CNBC’s Thomas Franck contributed to this report.