U.S. government debt prices were higher Wednesday, as investors looked to the outcome of a U.S. Federal Reserve meeting.
The yield on the benchmark 10-year Treasury note was lower at around 2.706 percent at 6:00 a.m. ET, while the yield on the 30-year Treasury bond was lower at 2.959 percent. Bond yields move inversely to prices.
In the previous session, U.S. government debt yields rose on the back of consumer confidence data that beat market expectations while inflation concerns grew. U.S. stocks came under severe pressure, with the Dow Jones industrial average falling more than 350 points by Tuesday’s close.
On Wednesday, the Federal Open Market Committee is set to conclude its two-day monetary policy meeting.
While the Federal Reserve isn’t expected to make any changes to its policy stance, the meeting will mark the last time Janet Yellen will act as chair of the central bank, before the role is passed on to Jerome Powell. The FOMC’s meeting announcement is set to come out at 2 p.m. ET.
On the data front, mortgage applications are due at 7 a.m. ET, followed by ADP national employment report at 8:15 a.m. ET, and the employment cost index at 8:30 a.m. ET. At 9:45 a.m. ET, Chicago purchasing manager index (PMI) is due, followed by pending home sales data at 10 a.m. ET.
Looking to the auctions space, the size of two notes auctions and one bonds auction, all of which are set to take place next week, are set to be announced.
On the political front, investors are likely to be mulling over the latest State of the Union address, made by President Donald Trump on Tuesday night. The overall theme of the incumbent’s speech was “a safe, strong and proud America,” with Trump touching upon topics such as immigration, bipartisan cooperation, infrastructure and the economy.
