EE Treasury returns. United States They fell Tuesday after the testimony in Congress of the president of the Federal Reserve, Jerome Powell, and the American secretary to the Treasury. USA, Steve Mnuchin, on the state of the economy.
What do treasures do?
The yield on 10-year treasury bills
TMUBMUSD10Y,
0.696%
It fell 3 basis points to 0.711% one day after reaching a two-month high. The rate for two-year notes
TMUBMUSD02Y,
0.161%
exceeded 1.2 basis points at 0.171%, while the 30-year bond yield
TMUBMUSD30Y,
1.412%
It fell 2.3 basis points to 1,433%.
What motivates Treasurys?
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testified before the Senate Banking Committee on the large number of fiscal and monetary stimulus packages spent to support the economy. The two used the platform to defend recovery efforts amid criticism over the way the federal aid package was channeled to big business at the expense of small business.
Although Powell asked for a further fiscal stimulus on Sunday, he appeared to moderate these comments during his testimony.
Watch: Powell and Mnuchin testify to coronavirus relief: blog live
Bond yields rose Monday after a phase 1 clinical trial for a Moderna coronavirus vaccine candidate showed positive results, raising hopes that COVID-19 may fall sooner than expected. expected. News weighed on shelter assets like the S&P 500
SPX
-1.04%
and Dow Jones Industrial Average
DJIA
-1.58%
they booked their biggest daily profit in about six weeks.
Hopes for the vaccine, however, were dashed on Tuesday. after a report says Moderna’s trial of its experimental remedy for COVID-19 lacked sufficient data.
In EE economic data. In the United States, April housing starts fell 30% to 891,000 annual rates. Economists polled by MarketWatch predicted, on average, that construction of new homes will take place at an annual rate of 900,000 that month.
What did market players say?
President Powell had the opportunity to dilute his comments on fiscal policy last week and he did so quickly. He said he was simply pointing out the risk that additional budget support “would be” necessary, “said Stephen Stanley, chief economist at Amherst Pierpont Securities.