US Treasury yields fell on Tuesday morning, after prepared comments by Federal Reserve Chairman Jerome Powell, to a Congressional hearing, in which he warned that the economic recovery is “far from complete”.
The yield on the 10-year reference Treasury note fell to 1.645% at 5:30 am ET. Yield on 30-year Treasury bonds fell to 2.366%. Yields move inversely to prices.
Powell and Treasury Secretary Janet Yellen are expected to make their first joint appearance before the United States House Financial Services Committee at 12 pm Eastern time on Tuesday to discuss their response to the coronavirus pandemic.
In prepared comments, released Monday afternoon before the Congress meeting, Powell said that the economic recovery from the pandemic “has progressed more rapidly than generally expected and appears to be strengthening.”
However, he said that the sectors of the economy most affected by the pandemic “remain weak” and the unemployment rate “underestimates the deficit”, so the recovery still has a long way to go.
Meanwhile, Fed Governor Lael Brainard is due to deliver a speech on U.S. economic prospects and monetary policy at the National Association for Business Economics’ annual economic policy conference at 3:45 pm Eastern Time.
New home sales data for February is expected to be released at 10am ET.
The auctions are expected to be held on Tuesday for $ 34 billion in 52-week notes, $ 40 billion in 42-day notes and $ 60 billion in 2-year notes.