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.
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.
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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%.
(END) Dow Jones Newswires
September 07, 2017 08:29 ET (12:29 GMT)