U.S. Treasury yields faltered Wednesday morning, ahead of a speech by Federal Reserve Chairman Jerome Powell later.
The yield on the 10-year Treasury Note rose slightly to 1.043% at 4 a.m. ET, while the yield on the 30-year Treasury bond rose to 1.803%. Yields are reversed to prices.
U.S. government bond yields were steady early in the trading session, and Powell was expected to report on the central bank’s economic outlook and monetary policy amid the pandemic.
Many investors hope that Powell and his colleagues will avoid the word “slow down,” the process by which the central bank would curb monthly bond purchases that have helped keep the financial system adrift with cash and encouraged investors take risks despite wealth valuations.
The Fed is due to post its decision on interest rates at 2 p.m. ET, and Powell is expected to speak with reporters at 2:30 p.m.
The deployment of coronavirus vaccines helped raise the global monetary outlook for the International Monetary Fund, which was released on Tuesday. The IMF forecasts that the world economy will grow by 5.5% in 2021, 0.3% higher than it predicted in October.
December durable goods orders are expected to be released at 8:30 a.m. ET on Wednesday.
Weekly EIA stock change data for gasoline, crude, crude Cushing and distillates will be released at 10:30 a.m. ET.
Auctions of $ 25 billion worth of 105-day notes, $ 30 billion of 154-day notes and $ 28 billion of two-year variable-rate notes will be held on Wednesday.
– CNBC’s Thomas Franck contributed to this report.