TREASURIES-U.S. long-dated yields fall to one-week lows; 2-year note auction well-received
U.S. Treasury yields were mixed on Tuesday in thin volume, with those on the long end of the curve falling for a third straight session, as investors looked to next week's Federal Reserve meeting for clues on the timing of its first interest rate hike since December 2018.
U.S. 10-year, 20-year, and 30-year Treasury yields all fell to one-week lows.
The benchmark U.S. 10-year yield was down nearly 2 basis points at 1.6185%.
Dollar edges up in steady markets before central bank meetings
The U.S. dollar edged up on Tuesday in narrow-range trading as markets awaited news from upcoming central bank meetings that might spark volatility.
After a report showed that U.S. consumers were more confident about the economy than expected, the dollar index rose modestly and was up 0.1% at 93.9280 at 3:30 p.m. EDT (1903 GMT).
The Bank of Canada meets on Wednesday and the European Central Bank and Bank of Japan convene on Thursday. Next week brings meetings of the U.S. Federal Reserve, Bank of England, Reserve Bank of Australia and Norway’s Norges Bank.
The euro was down 0.1% at $1.1597. The euro has been weakened recently by expectations that the ECB will take a dovish stance when it meets. Doing so would come in the face of news on Tuesday that inflation expectations for the euro zone among bond investors had reached a seven-year high above 2.07%.
The U.S. dollar rose 0.4% against the Japanese yen, with the pair at 114.1400, below the four-year high of 114.695 reached last week.
The Bank of Japan is expected to maintain its massive stimulus program and slash this year’s inflation forecast when it meets on Thursday, showing again that it has no intention of following other central banks in backing away from pandemic policies.
The Bank of Canada is expected to raise its inflation forecast and to largely end stimulus from its pandemic-era bond-buying program.
Reference: CNBC, Reuters
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