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Treasury yields inched higher on Tuesday, as traders geared up for a big week of Federal Reserve policymakers’ commentary.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.699%
was 4.73%, up 0.6 basis points. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
3.742%
was 3.79%, up 1.7 basis points. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.837%
was 3.87%, up 1.7 basis points.
What’s driving markets
The U.S. economics calendar on Monday includes housing starts data, as well as a panel with both New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr. Fed Chair Jerome Powell on Wednesday is due to deliver his semi-annual congressional testimony.
In Germany, producer prices plunged 1.4% in May, on the heels of the downturn in U.S. producer price index reported last week.
The inversion of the 2- and 10-year Treasurys yield is near the deepest levels of the year. The Fed’s so called dot plot forecast for its policy interest rate pointed to two more rate increases this year at its last meeting while the last two readings of weekly jobless benefit claims have been elevated, a possible sign of labor-market deterioration.
