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U.S. Treasury yields edged higher for a third day early Tuesday after President-elect Biden’s team was given permission to embark on the transition to a new administration, easing uncertainty about what further delays could spell for the economy and markets.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.868% was at 0.872%, up 1.7 basis points from Monday, while the 2-year note yield TMUBMUSD02Y, 0.160% was virtually unchanged at 0.160%. The 30-year bond yield TMUBMUSD30Y, 1.579% rose 1.4 basis points to 1.576%.
What’s driving Treasurys?
U.S. General Services Administration head Emily Murphy gave permission for president-elect Joe Biden to start his transition, allowing Biden’s team to start talking to federal agency officials and prepare to move into the White House. This ends the 16-day standoff since the Nov. 3 presidential election results were called.
Biden is set to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury Secretary under his administration.
Investors will watch remarks from senior Fed officials, too. New York Fed President John Williams and Vice Chair Richard Clarida are set to speak midday Tuesday.
In U.S. economic data, the Case-Shiller national home price index for September and a gauge of consumer confidence in November will be published.
The U.S. Treasury Department will also wrap up the last of its auctions this week, with $56 billion of 7-year notes going on the block.
What did market participants say?
“The formal transition from the current Administration to the next one was certified after the close, reducing the noise around all the risks that could happen if it was further delayed,” said Jim Vogel, a rate strategist at FHN Financial.
