Government bond yields fell Tuesday morning as investors continued to focus on a key job report due to be released later in the week.
The benchmark ten-year government bond yield fell less than one basis point to 1.277% at 3:45 a.m. ET. The 30-year government bond yield gave up less than a basis point and fell to 1.89%. The returns move inversely to the prices and 1 basis point equals 0.01%.
The August Outside Farm Payroll Report is due to be released Friday at 8:30 a.m. ET. Economists polled by Dow Jones estimate that 750,000 jobs were created in August and the unemployment rate has fallen to 5.2%.
The Federal Reserve is monitoring the labor market recovery to gauge when to tighten monetary policy.
In a speech at the Fed’s annual Jackson Hole Symposium on Friday, Fed chief Jerome Powell hinted that it would likely begin curbing bond purchases before the end of the year. Powell said, however, that rate hikes are not imminent as “there is still a lot of ground to overcome” before the economy reaches full employment.
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In relation to the data to be released Tuesday, the S&P / Case-Shiller House Price Index is slated to be released for June at 9 a.m. ET. The August consumer confidence CB survey will then be released at 10 a.m. ET.
An auction for 21-day notes valued at US $ 45 billion will take place on Tuesday.
– CNBC’s Yun Li and Jeff Cox contributed to this market report.