BOND REPORT: Treasurys Mixed Ahead Of Economic Data, Fed Minutes

By William Watts, MarketWatch Features Dow Jones Newswires

Yellen strikes dovish tone; November Fed minutes awaited

Continue Reading Below

Treasurys were posting a mixed performance, with prices little changed Wednesday as traders awaited a flurry of economic data and minutes of the Federal Reserve's November policy meeting.

Financial markets will be closed Thursday for the Thanksgiving Day holiday, with stock and bond markets set for an early close on Friday.

What are yields doing?

The yield on the benchmark 10-year Treasury note rose 0.8 basis point to 2.371%, while the yield on the 2-year note fell 0.4 basis point to 1.768%. The yield on the 30-year Treasury bond rose 1.1 basis points to 2.784%.

Yields and debt prices move in opposite directions.

Continue Reading Below

What's driving markets?

Outgoing Federal Reserve Chairwoman Janet Yellen sounded a dovish note (http://www.marketwatch.com/story/yellen-says-inflation-below-2-goal-poses-one-of-the-biggest-challenges-to-fed-2017-11-21) in remarks Tuesday night, expressing concerns about stubbornly below-target inflation, a phenomenon she described as one of the "biggest challenges" faced by policy makers. If inflation remains subdued, the impetus to raise and continue normalizing interest rates may not be apparent, she said.

Yellen is set to leave the Fed in February when her term as chairwoman ends. President Donald Trump has nominated Fed Gov. Jerome Powell to take her place at the helm of the central bank.

What are investors watching?

Weekly jobless claims data are due at 8:30 a.m. Eastern, a day early due to Thanksgiving. At the same time, the Commerce Department will release October data on durable goods orders, which economists surveyed by MarketWatch forecast to rise by 0.5% after a 2% September jump. The University of Michigan's latest read on consumer sentiment is due at 10 a.m. Eastern.

See:MarketWatch Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Minutes of the Fed's November policy meeting are set for release at 2 p.m. Eastern.

What are analysts saying?

Treasurys may be poised to tread water ahead of Thursday's holiday and Friday's shortened session, analysts said.

The November Fed meeting "saw no policy change and with the decision already made on starting bond sales, the discussion might not have as much interest for the market as usual," said Steven Barrow, currency and fixed-income strategist at Standard Bank, noting a December rate raise is priced in at a 97% probability based on fed funds futures and slightly higher based on overnight interest swap rates.

(END) Dow Jones Newswires

November 22, 2017 08:02 ET (13:02 GMT)