US Treasury bond yields fell Wednesday after strong demand in a $ 38 billion auction on 10-year bonds on Tuesday.
The benchmark 10-year Treasury note yield fell to 1.119% at 4:40 a.m. ET, while the yield on the 30-year Treasury note fell to 1.857%. The returns move inversely to the prices.
Government bond yields continued to fall from their highs in the previous session as the auction closed with a yield of 1.164%, compared to an average of 0.781% on six reopenings as investors were at risk of inflation and invested the government bonds with the highest returns since Months ago. Non-traders bid 80% versus an average of 73.6%.
Another auction for 29-year, 10-month bonds valued at $ 24 billion is slated for Wednesday. It also sells 105-day invoices valued at $ 25 billion and 154-day invoices valued at $ 30 billion.
Meanwhile, the political turmoil in the US continues to weigh on investors after Vice President Mike Pence said on Tuesday evening that he would not remove President Donald Trump from office.
This was just before the House passed a move urging Pence and the Cabinet to push Trump out of the White House after instigating riots in the Capitol last week.
US inflation data for December is expected to be released at 8:30 a.m. ET.
Weekly MSRP inventory change figures for Crude Oil, Cushing Crude Oil, Distillate, and Gasoline are expected to be released at 10:30 a.m. ET.
The US government’s monthly budget statement for December is expected to be released at 12:00 noon CET.
James Bullard, President of the Federal Reserve Bank of St. Louis, will speak at 9:30 a.m. ET. Fed Governor Lael Brainard will speak at 1:00 p.m. ET, followed by Patrick Harker, President of the Philadelphia Fed at 2:00 p.m. ET and Richard Clarida, Fed vice chairman at 3:00 p.m. ET.
– CNBC’s Yun Li and Jacob Pramuk contributed to this report.
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