Treasury yields drop slightly ahead of Fed Chairman Powell’s speech

U.S. Treasury yields fell on Wednesday morning, ahead of a speech by Federal Reserve Chairman Jerome Powell later today.

The benchmark 10-year T-bill yield dipped slightly to 1.031% shortly after 7 a.m. ET, while the yield on the 30-year T-bill fell to 1.789%. Yields move inversely with prices.

U.S. government bond yields were slightly lower early in the trading session, with Powell expected to provide an update on the economic outlook and central bank monetary policy amid the pandemic.

Many investors are hoping that Powell and his colleagues will avoid the word “tapering,” the process by which the central bank would limit its monthly bond purchases that have helped keep the financial system adrift with liquidity and encouraged investors to take risks despite the wealth of equity. evaluations.

The Fed is due to release its interest rate decision at 2 p.m. ET, and Powell is expected to speak to reporters at 2:30 p.m. ET.

The coronavirus vaccine rollout has helped improve the International Monetary Fund’s global economic outlook, which was released on Tuesday. The IMF is now forecasting global economic growth of 5.5% in 2021, 0.3% more than it predicted in October.

December data on durable goods orders is expected to be released Wednesday at 8:30 a.m. ET.

The EIA’s weekly inventory change data for gasoline, crude oil, Cushing crude oil and distillate is then due for release at 10:30 a.m. ET.

Auctions will take place on Wednesday for $ 25 billion in 105-day notes, $ 30 billion in 154-day notes and $ 28 billion in 2-year floating rate notes.

Thomas Franck of CNBC contributed to this report.

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