US Treasury yields fell on Tuesday morning, following comments prepared by Federal Reserve Chairman Jerome Powell for a congressional hearing, warning that the economic recovery is “far from complete.”
The yield on the 10-year treasury note fell to 1.645% at 5:30 am ET. The yield on the 30-year treasury bond decreased to 2.346%. Yields move in the opposite direction to prices.
Powell and Treasury Secretary Janet Yellen are due to make their first joint appearance before the US Financial Services Committee on Tuesday at 12 pm ET to discuss their response to the coronavirus pandemic.
In prepared remarks released Monday afternoon before the congressional meeting, Powell said the economic recovery from the pandemic “has progressed faster than generally expected and appears to be consolidating.”
However, he said that the sectors of the economy most affected by the pandemic “remain weak” and the unemployment rate “underestimates the deficit”, so that the recovery still has a long way to go.
Meanwhile, Fed Governor Lael Brainard is due to deliver a speech on the US economic outlook and monetary policy at the National Economic Business Association’s annual economic policy conference at 3:45 p.m.
Data on new home sales for February will be released at 10 a.m. ET.
Auctions are set to take place on Tuesday for $ 34 billion for 52-week bills, $ 40 billion for 42-day bills and $ 60 billion for two-year tickets.