The US 10-year Treasury yield remained above 1.6% on Tuesday morning, ahead of the Federal Reserve’s first political meeting later that day.
The benchmark 10-year Treasury note yield fell to 1.602% around 7:30 a.m. ET. The yield on the 30-year government bond fell to 2.357%. The returns move in reverse to the prices.
Investors will be watching the Fed meeting closely to see if the US Federal Reserve changes its interest rate outlook or signals how quickly it could roll back its bond-buying program. The Fed will release new economic and interest rate forecasts that could show that Fed officials are expecting a rate hike by 2023.
Fed chairman Jerome Powell will hold a press conference after the second day of the meeting on Wednesday afternoon.
Retail sales in February fell more-than-expected, down 3%, data released Tuesday showed. However, January retail sales were revised up from 5.3% to 7.6%, causing the equity and bond markets to largely ignore that number.
The NAHB Housing Market Index for March is expected to be published at 10 a.m. CET.
Auctions will be held Tuesday for 42-day bonds valued at $ 35 billion and 19-year 11-month bonds valued at $ 24 billion.
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