US Treasury yields fell Tuesday morning after preliminary remarks by Federal Reserve Chairman Jerome Powell before a congressional hearing warning that the economic recovery was “far from complete.”
The yield on the benchmark 10-year Treasury bill fell to 1.645% at 5:30 a.m. ET. The yield on the 30-year government bond fell to 2.346%. Revenues move inversely with prices.
Powell and Treasury Secretary Janet Yellen will appear jointly for the first time before the U.S. House Committee on Financial Services on Tuesday at noon ET to discuss their response to the coronavirus pandemic.
In prepared remarks, released Monday afternoon ahead of the congressional meeting, Powell said the economic recovery from the pandemic had “progressed faster than widely expected and appears to be strengthening.”
However, he said the sectors of the economy hardest hit by the pandemic “remain weak” and that the unemployment rate “underestimates the deficit,” so the recovery still has a long way to go.
Meanwhile, Fed Governor Lael Brainard will deliver a speech on the US economic outlook and monetary policy at the National Association for Business Economics annual economic policy conference at 3:45 p.m. ET.
New home sales data for February is scheduled for 10 a.m.ET.
Auctions will be held Tuesday for $ 34 billion in 52-week notes, $ 40 billion in 42-day bills and $ 60 billion in two-year notes.