Treasury yields were little changed Tuesday morning, as traders returned from the three-day Juneteenth holiday weekend and geared up for a big week of commentary by Federal Reserve policy makers.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.687%
was 4.726%, marginally higher from 4.720% on Friday. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
3.728%
was 3.754%, down slightly from 3.768% Friday afternoon. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.814%
was 3.843%, down slightly from 3.855% on Friday.
What’s driving markets
Data released on Tuesday showed that construction on new American homes jumped 21.7% in May, as builders ramped up activity to meet strong demand.
Later in the day, New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr are set to appear on a panel at a conference in New York.
On Wednesday, Fed Chair Jerome Powell is scheduled to begin the first of two days worth of semi-annual congressional testimony.
The inversion of the 2- and 10-year Treasurys yield is close to its deepest levels of the year. The Fed’s so-called dot plot forecast for its main interest rate target pointed to two more rate increases this year, while the most recent reading on weekly jobless benefit claims was elevated in a possible sign of labor-market deterioration.
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