BOND REPORT: Treasury Yields Slip Ahead Of ECB News Conference

By Mark DeCambre, MarketWatch Features Dow Jones Newswires

Treasury prices rose slightly, nudging yields lower, Thursday morning ahead of the conclusion of a key meeting of the European Central Bank's, which could offer clues about the monetary policy path for the region and influence trade in U.S. government paper.

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The ECB, as expected, kept in place its EUR60 billion asset-buying program and left its main refinancing operations at 0%, while the rate on deposits left overnight was maintained at minus 0.4% and its marginal lending facility was left at 0.25%. Looking ahead, the key focus will be ECB President Mario Draghi's news conference, which begins at 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.

Check out: ECB live blog: Is strong euro making Mario Draghi miserable? (http://blogs.marketwatch.com/thetell/2017/09/07/ecb-live-blog-is-strong-euro-making-mario-draghi-miserable/?mod=MW_story_latest_news)

Although traders expect the ECB to commence tapering the crisis-era, European stimulus program in 2018, Draghi may be measured in his statements in order not to roil markets. Comments Draghi made in Sintra, Portugal in late June (http://www.marketwatch.com/story/draghi-hints-ecb-may-start-winding-down-qe-2017-06-27)were read as hawkish by investors who sent the euro surging against the U.S. dollar.

The benchmark 10-year Treasury note was off 2.3 basis points at 2.085%, compared with 2.108% late Wednesday in New York. The two-year Treasury note was off 1.2 basis point at 1.294%, compared with 1.306%. Meanwhile, the 30-year bond yield slipping 1.6 basis point at 2.709%, versus 2.724 late Wednesday.

Meanwhile, the German 10-year government bond barely budged 0.3 basis point lower to 0.352%, compared with 0.355%.

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(END) Dow Jones Newswires

September 07, 2017 08:29 ET (12:29 GMT)