BOND REPORT: Treasury Yields Retreat As Global Stocks Turn Lower, Dollar Softens

By Mark DeCambre, MarketWatchFeaturesDow Jones Newswires

U.S. 10-year benchmark yields slip to 2.30% as stocks slump

Treasury prices rose on Wednesday, pressuring yields, as investors await a late-afternoon speech from Federal Reserve Chairwoman Janet Yellen that could offer market participants further guidance on the path of monetary policy.

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Yellen's speech will follow economic reports on services as market participants weigh the prospect of a leadership change at the U.S. central bank.

What did yields do?

The 2-year note yield was down 1.6 basis point at 1.459%, compared with 1.475% late Tuesday.

The benchmark 10-year Treasury note yield was 2.9 basis points lower at 2.303%, versus 2.332%, while the 30-year bond yield traded down by 2.3 basis points at 2.849%, compared with 2.872%.

Bond prices move inversely to yields.

What are bond traders watching?

Yellen is due to give brief opening remarks at a conference on community banking at the St. Louis Fed at 3:15 p.m. Eastern.

Meanwhile, heightened talk that President Donald Trump has compiled a short list of candidates to lead the Fed, as Yellen's term ends early next year, has fueled some uncertainty about the central bank's policy strategy. Yellen is viewed as a candidate but former Fed Gov. Kevin Warsh (http://www.marketwatch.com/story/warsh-would-be-strange-pick-as-fed-chair-for-a-president-who-says-he-cares-about-jobs-2017-10-03), who is seen as more hawkish, or more willing to increase rates rapidly, has been discussed as a possible candidate. Fed Gov. Jerome Powell (http://www.marketwatch.com/story/trump-interviewed-fed-gov-powell-for-top-job-at-central-bank---wsj-2017-09-29), who is seen as less hawkish than Warsh, is also seen as a potential front-runner.

What data are on investors' radar?

What did other assets do?

The 10-year German government bond yield retreated to 0.419%, versus 0.459%.

The Dow Jones Industrial Average and the S&P 500 index were poised to give up their records levels (http://www.marketwatch.com/story/us-stocks-set-to-catch-their-breath-after-record-run-but-tesla-jumps-2017-10-04)at the open, offering some runway to assets perceived as havens, like bonds and gold futures . Gold was set to snap a three-session skid lower. The U.S. dollar also slipped, down 0.2%, as measured by the ICE U.S. Dollar Index , which measures the buck against a half-dozen rival currencies.

(END) Dow Jones Newswires

October 04, 2017 08:43 ET (12:43 GMT)