U.S. Treasury yields rose Monday morning, and investors focused on the Federal Reserve’s annual central banking event, which is due to be held later in the week.
The yield on the 10-year reference cash note added 1 basis point, up 1.273% at 4:10 am ET. The yield on the 30-year Treasury bond rose one basis point to 1.886%. Yields move inversely to prices.
The Fed’s annual symposium, Jackson Hole, Wyo., Will take place virtually Thursday and Friday. The event brings together central bankers from around the world to discuss monetary policy.
Fed Chairman Jerome Powell will deliver a speech, which will be broadcast live at 10 a.m. ET on Friday. Investors will listen carefully to any indication as to when the Fed could try to reduce its bond purchases.
Nomi Prins, author of “Collusion: How Central Bankers Rigged the World,” told CNBC’s “Squawk Box Europe” on Monday that she did not believe the Fed would announce a reduction in bond purchases at that meeting.
He suggested that this is because the effect of spreading the delta variant continued to be seen, in that it had forced the Fed to hold the virtual event at the last minute.
I think President Jerome Powell will take a light step, as he did after the last few minutes, and he said ‘there’s potential, we’re looking beyond, we’re data-oriented,’ all sorts of things that come to the fore. Fed talk, ”Prins said.
“But when it comes to the actual taper announcement and a specific schedule, I don’t think this particular episode of Jackson Hole is the time or the place, and I think the Fed will know because of the virtual globality that it really has. . “, added.
As for the data to be released Monday, the Chicago Fed will release its July national economic activity index at 8:30 a.m. ET.
Markit will then post flash reads of his purchasing managers ’indexes for August at 9:45 am ET.
The number of existing home sales made in July should be posted at 10 a.m. ET.
Auctions are expected to be held Monday for $ 51 billion on 13-week bills and $ 48 billion in 26 weeks.