Treasury yields rose slightly on Wednesday, with the benchmark 10-year note rising from a seven-month low a day ahead of a series of events, including a European Central Bank meeting, a U.K. general election and Senate testimony by the former head of the Federal Bureau of Investigation, that could set the market's near-term direction.
The yield on the 10-year Treasury note nudged up 0.4 basis point to 2.152%, after closing Tuesday at its lowest level since Nov. 10. Bond prices move inversely to yields; one basis point is one hundredth of a percentage point. The yield on the 2-year note added 0.4 basis point to 1.302%, while the yield on the 30-year bond, or the long bond, rose 0.4 basis point to 2.816%.
Former FBI chief James Comey will appear in front of a Senate panel to give testimony on a range of topics, including investigations into Russia's alleged meddling in the 2016 election.
See: What to watch when James Comey testifies to the Senate on Thursday (http://www.marketwatch.com/story/what-to-watch-when-james-comey-testifies-to-the-senate-on-thursday-2017-06-05)
Other sources of geopolitical turmoil include the increasingly uncertain U.K. general election (http://www.marketwatch.com/story/this-is-the-worst-that-could-happen-to-the-pound-in-the-uk-election-and-its-not-jeremy-corbyn-2017-06-07) as Prime Minister Theresa May's Conservatives saw a formerly large lead in the polls against the opposition Labor Party shrink. Analysts say a slimmer Conservative majority would undermine May's mandate and her negotiating position as she looks for favorable terms as the U.K. gives up its EU membership.
On the same day, the European Central Bank will hold its policy meeting. Investors are expecting a slightly more hawkish tilt to language used by the ban (http://www.marketwatch.com/story/draghis-ecb-may-take-baby-steps-toward-ending-ultraloose-monetary-policy-2017-06-06)k (http://www.marketwatch.com/story/draghis-ecb-may-take-baby-steps-toward-ending-ultraloose-monetary-policy-2017-06-06) in preparation for a tapering of its asset purchase program. But there could be little change to the status quo, with the eurozone finding it tough to reach the ECB's 2% inflation target (http://www.marketwatch.com/story/euro-slumps-after-report-ecb-will-cut-inflation-outlook-through-2019-2017-06-07).
(END) Dow Jones Newswires
June 07, 2017 08:30 ET (12:30 GMT)