Prices of US government debt were lower on Wednesday after President Donald Trump suggested he may not sign a long-delayed coronavirus aid package.
The yield on the 10-year government bond rose to 0.921%, while the yield on the 30-year government bond was slightly higher, at 1.655%. Bond yields move inversely with prices.
Trump poured cold water on Tuesday on the $ 900 billion Covid bill passed by Congress earlier this week. He called the measure an inappropriate “disgrace” and urged lawmakers to make a number of changes, including increased direct payments to individuals and families.
The current package includes a boost to unemployment benefits, more small business loans, an additional $ 600 direct payment, and funds to streamline the critical distribution of Covid-19 vaccines. However, Trump was unhappy with the $ 600 direct payments and called for $ 2,000.
Investors were also nervous this week about a new strain of coronavirus first identified by the UK. The variant is believed to be up to 70% more transmissible than previous strains.
In terms of economic data, durable goods, unemployment claims, personal income and expenses, new home sales, consumer sentiment and FHFA house price index reports will be released on Wednesday.