Treasury yields slide as Fed Powell warns of prolonged uncertainty

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US government debt prices rose Tuesday morning after Federal Reserve Chairman Jerome Powell underscored the prolonged uncertainty facing the US economy as coronavirus cases soar in many states.

At around 2:05 a.m.ET, the benchmark 10-year Treasury bill yield was down to 0.6283% and the 30-year Treasury bill yield was down to 1.3780%. Yields move inversely with prices.In remarks prepared for a congressional hearing on Tuesday, Powell said that despite a recent increase in economic activity as the foreclosures are relaxed in the world’s largest economy, the outlook is “extraordinarily uncertain” and will depend on both virus containment and government support for recovery.

Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 pm ET Tuesday.

Meanwhile, coronavirus cases continue to increase across the country, forcing states like New Jersey, Arizona and Kansas to backtrack on their plans to further loosen the lockdowns. A Reuters tally showed that California recorded a daily record of new Covid-19 cases on Monday as health officials in Los Angeles warned that hospitals could be overwhelmed.

According to data compiled by Johns Hopkins University, the United States has now confirmed more than 2.59 million cases of coronavirus with more than 126,000 deaths, and Dr. Anne Schuchat, senior assistant director of the Centers for Disease Control and Prevention said on Monday that the virus was spreading too quickly across the country to be brought under control.

With more than 10.3 million cases worldwide, the director general of the World Health Organization, Tedros Adhanom Ghebreyesus, warned on Monday that the pandemic was “not even close to being finished”.

S & P / Case-Shiller house price data for April is expected at 9:00 a.m. ET on Tuesday.

Auctions will be held on Tuesday for $ 35 billion in 119-day Treasury bills and $ 35 billion in 42-day bills.

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