Senate postponement of $ 2,000 incentive controls

Government bond yields rose Wednesday, the penultimate trading day of 2020, as investors assessed the status of a new coronavirus stimulus package.

The yield on the 10-year government bond increased by 2 basis points to 0.9514%, while the yield on the 30-year government bond was also higher at 1.6932%. Revenues move inversely with prices.

Republican majority leader Mitch McConnell in the Senate on Tuesday blocked an effort to unanimously pass a bill to increase direct payments in the coronavirus aid package to $ 2,000 by the end of the year.

McConnell is under pressure to take action after the House – with nearly all Democrats and a few dozen Republicans on board – voted on Monday to increase cash deposits from $ 600 to $ 2,000.

Senate Republicans wary of spending more on pandemic aid are looking for a way to meet the demands of a president who called year-end coronavirus relief disgraceful as well as the funding bill, and their majority hold on during races overshadowed by the crisis.

As for the data, the forward economic indicators for November will be released around 8:30 a.m. ET. Chicago Purchasing Managers’ Index (PMI) data for December and pending home sales for November will both be released a little later in the session.

The U.S. Treasury will auction $ 25 billion in 105-day bills and $ 30 billion in 154-day bills on Wednesday.

– CNBC’s Jacob Pramuk contributed to this report.

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