US debt prices went up Tuesday morning as traders anticipated US jobs data and closely watched US House Speaker Nancy Pelosi’s Asian trip.
The yield on the benchmark 10-year Treasury note fell to 2.5535% around 2:40 a.m. ET; the yield on the 30-year Treasury bond also fell to 2.8906%. Yields move inversely to prices.
The moves come as several economic indicators indicate the United States economy is slowing down, and as a result many investors are wondering whether the Federal Reserve will be able to reduce monetary tightening in light of these readings.
Although it violates China’s desires, the upcoming meeting of U.S. House Speaker Nancy Pelosi with Taiwanese officials may affect investors in both the U.S. and China.
The newest jobs numbers, rental vacancy rates, and homeowner numbers will be available at 10 a.m. ET. Chicago Fed President Charles Evans will also be speaking. James Bullard from the St. Louis Fed will be addressing the audience at 6:45 p.m.
|US3M||U.S. 3 Month Treasury||2.489||-0.057||0|
|US1Y||U.S. 1 Year Treasury||2.953||-0.026||0|
|US2Y||U.S. 2 Year Treasury||2.868||-0.041||0|
|US5Y||U.S. 5 Year Treasury||2.622||-0.046||0|
|US10Y||U.S. 10 Year Treasury||2.561||-0.044||0|
|US30Y||U.S. 30 Year Treasury||2.887||-0.038||0|
What Is The Impact On Emerging Markets?
U.S. Treasury yields fell on Thursday ahead of an expected visit by House Speaker Nancy Pelosi to Taiwan, a move that could further inflame tensions with China. The yield on the benchmark 10-year Treasury note dipped below 1.6% for the first time since March 2020, while the yield on the 30-year Treasury bond fell below 2.3%.
Outlook For the Dollar and Gold Prices
The dollar and gold prices are both down today as U.S Treasury yields move lower ahead of Nancy Pelosi’s expected visit to Taiwan. This visit could further inflame tensions between the U.S and China, which could lead to more selling pressure on the dollar. Gold prices are benefiting from safe-haven demand as investors seek refuge from the potential volatility. Prices could continue to rise if the situation deteriorates further.