BOND REPORT: Treasurys Mixed Ahead Of Fed's Powell Confirmation Hearing

By William Watts, MarketWatch Features Dow Jones Newswires

Treasury prices were mixed Tuesday, leaving yields with no clear direction, as investors awaited economic data and a Senate confirmation hearing for Federal Reserve Gov. Jerome Powell, who has been nominated to replace Janet Yellen at the helm of the central bank.

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What are yields doing?

The yield on the 10-year Treasury note fell 0.5 basis point to 2.335%, while the yield on the 2-year note rose 0.4 basis point to 1.758%. The yield on the 30-year Treasury bond rose 1.19 basis points to 2.772%.

Yields and debt prices move in opposite directions.

The Senate Banking Committee is scheduled to meet at Tuesday morning to hear testimony from Powell, in a hearing that will offer the first major clue to how a Powell-led Fed would conduct monetary policy and its other responsibilities. Analysts expect few bombshells, however.

See:Meet the next Fed boss. Same as the old boss? Jerome Powell to face Senate glare (http://www.marketwatch.com/story/meet-the-next-fed-boss-same-as-the-old-boss-jerome-powell-to-face-senate-glare-2017-11-26)

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(http://www.marketwatch.com/story/meet-the-next-fed-boss-same-as-the-old-boss-jerome-powell-to-face-senate-glare-2017-11-26)The chairman-designate's opening statement was released late Monday (http://www.marketwatch.com/story/powell-to-testify-fed-will-continue-to-hike-interest-rates-shrink-the-balance-sheet-2017-11-27), with Powell saying he would stay the course laid out by Yellen to continue raising interest rates while allowing the balance sheet to gradually shrink. Powell is expected to easily win Senate confirmation. Yellen's term as chairwoman ends in February.

What are analysts saying?

Powell's statement indicates "that he is likely to stick to his own forward guidance. In other words, the risk of big surprises on this front is fairly limited, although things are never black or white of course," said Elwin de Groot, head of macro strategy at Rabobank, in a note.

What data is in store?

October data on trade in goods is due at 8:30 a.m. Eastern. Economists surveyed by MarketWatch produced an average forecast for a deficit of $65 billion after a $64.1 billion gap in September. At 9 a.m. Eastern, the September Case-Shiller home price index is due, while a consumer confidence index reading for November is set for release at 10 a.m. Eastern.

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

(http://www.marketwatch.com/economy-politics/calendars/economic)Philadelphia Federal Reserve Bank President Patrick Harker is scheduled to deliver a speechon financial safety for an aging population at 9 a.m. Eastern, while New York Fed President William Dudley is set to offer opening remarks at a conference on U.S. Treasury markets at 9:15 a.m.

(END) Dow Jones Newswires

November 28, 2017 08:00 ET (13:00 GMT)