U.S. Treasury yields declined Tuesday morning, following prepared comments by Federal Reserve Chairman Jerome Powell for a congressional hearing in which he warned that the economic recovery was “far from complete.”
The yield on the 10-year Treasury note fell to 1.645% at 5:30 am ET. The yield on the 30-year Treasury bond fell to 2.346%. Yields are reversed to prices.
Powell and Treasury Secretary Janet Yellen will have to make their first joint appearance before the U.S. House Financial Services Committee at 12 noon ET on Tuesday to discuss their response to the coronavirus pandemic.
In prepared statements, released Monday afternoon ahead of the congressional meeting, Powell said the pandemic’s economic recovery “had progressed faster than generally expected and looks set to strengthen.”
However, he said the sectors of the economy hardest hit by the pandemic “remain weak” and that the unemployment rate “underestimates the deficit”, so the recovery still has a long way to go.
Meanwhile, Fed Governor Lael Brainard will make a speech on the economic outlook and monetary policy of the United States at the annual economic policy conference of the National Association of Business Economics at 3:45 p.m. .
February new home sales data are due to be posted at 10 a.m. (ET).
Auctions are set to be held Tuesday for $ 34 billion instead of 52 weeks, $ 40 billion in 42 days and $ 60 billion in two-year notes.