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U.S. Treasury yields edged higher on early Wednesday’s trade, but largely clung to the floor of its recent trading range ahead of an auction for 20-year government bonds.
What are Treasurys doing?
The 10-year Treasury note rate
BX:TMUBMUSD10Y
was up a basis point to 1.572%. The 2-year note yield
BX:TMUBMUSD02Y
was steady at 0.149%, while the 30-year bond yield
BX:TMUBMUSD30Y
traded up a single basis point to 2.269%.
What’s driving Treasurys?
The highlight of the trading session is expected to be a $20 billion auction for long-dated Treasury bonds Wednesday afternoon. The sale could offer clues on the appetite for government bonds, after they rallied over the past month.
There is little U.S. economic data due for release on Wednesday, leaving investors focused on the coronavirus pandemic trajectory.
Global equities markets are under some pressure this week amid worries that the pandemic is accelerating in some countries, even as others like the U.K. and U.S. make progress in controlling the disease. Some of those concerns may have fed demand for Treasurys and other safe assets this week.
What did market participants say?
“Investors are now wondering whether the rebound in volatility, albeit from lows, has further to run,” said Kenneth Broux, a strategist at Société Générale.
