BOND REPORT: Treasury Yields Steady Before Durable Goods Data

By Sunny Oh Features Dow Jones Newswires

Treasurys showed little change ahead of a raft of economic data that could help orient traders that are looking for so-called "transitory weakness" in recent inflation numbers that could prove crucial on whether the Fed will accelerate or slow down its tightening of monetary policy.

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The yield on the 10-year Treasury note edged up 0.4 basis point to 2.149%. Bond prices move inversely to yields; one basis point is one hundredth of a percentage point. The 2-year note yield was unchanged at 1.345%, while the yield on the 30-year bond, or the long bond, , was steady at 2.718%.

The raft of economic data could prove to be the highlight of the day with most of the action among Fed speakers having taken place earlier in the morning. Durable orders, a measure of sales of big-ticket items and a gauge of how busy factories are likely to be in the future, will come in at 8:30 a.m. Eastern, along with the Chicago Fed's National Activity Index, a gauge of economic activity and inflationary pressures. Later on, the Dallas Fed's Texas manufacturing Outlook Survey is set for release at 10:30 a.m.

Traders also took a close look at the Fed speakers in the morning. San Francisco Fed President John Williams, a nonvoting member of the central bank's interest-rate setting committee, said gradual rate increases are necessary to prevent the economy from overheating (http://www.marketwatch.com/story/feds-williams-says-gradual-rate-hikes-are-needed-for-growth-2017-06-26). New York Fed President William Dudley gave a talk at the Bank for International Settlements on Sunday but did not touch on monetary policy.

(END) Dow Jones Newswires

June 26, 2017 08:25 ET (12:25 GMT)