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U.S. Treasury yields slipped early Tuesday as investors eyed the upcoming presidential debate late Tuesday which could offer further clues on the outlook for the November elections.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.652% fell 1.5 basis points to 0.648%, while the 2-year note rate TMUBMUSD02Y, 0.128% edged 0.4 basis point down to 0.127%. The 30-year bond yield TMUBMUSD30Y, 1.418% slipped 1.7 basis points to 1.406%. Bond prices move inversely to yields.
What’s driving Treasurys?
The presidential debate on Tuesday night may provide markets with clues about how President Donald Trump and Democratic candidate Joe Biden will fare in the weeks running into the election. Investors are worried that a contested election could create volatility in markets.
Yet so far, Treasurys have showed muted reaction even as political jitters have driven sharp swings in stock-market trading in the past few weeks.
The New York Federal Reserve’s Treasury Market conference starts at 9 a.m. ET, featuring senior officials including New York Fed President John Williams and Fed Vice Chairman Richard Clarida.
In U.S. economic data, the Conference Board’s consumer confidence index for September is due at 10 a.m. The U.S. trade deficit in goods widened to $82.9 billion in August in data published early Tuesday.
What did market participants’ say?
“Given Covid and the extreme uncertainty heading into November, tonight’s debate carries more weight in our view than in more normal times,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities.
