investors look ahead to more delayed data
U.S. Treasury yields fell slightly on Tuesday as investors expected more delayed data to be released during the holiday-shortened trading week.
At 3:34 a.m. ET, the 10-year Treasury yield was down more than 3 basis points to 4.02%, and the 30-year Treasury yield was down 3 basis points to 4.66%. The 2-year Treasury bill yield fell 2 basis points to 3.388%.
One basis point equals 0.01%, and yields move in the opposite direction to prices.
The bond market was closed on Monday for Presidents Day, and Tuesday is shaping up to be a quiet start to the week for investors awaiting the release of lots of economic data.
This includes the weekly ADP Employment Change report released Tuesday morning, as well as the Empire Manufacturing Index and NAHB Housing Market Index for February.
Investors are awaiting Wednesday’s FOMC minutes, which will provide insight into the latest interest rate decision and future monetary policy.
They also expect more lagging economic data this week, including housing data for November and December on Wednesday, as well as the December personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge, on Friday.
Investors are currently pricing in a 90% chance that the Fed will keep interest rates unchanged in the 350-375 range. CME FedWatch Tool.
