Treasury prices were mostly higher Tuesday, pulling down yields, as investors digested economic data and a Senate confirmation hearing got under way for Federal Reserve Gov. Jerome Powell, who has been nominated to replace Janet Yellen at the helm of the central bank.
What are yields doing?
The yield on the 10-year Treasury note fell 2 basis points to 2.32%, while the yield on the 2-year note fell 2 basis points to 1.734%. The yield on the 30-year Treasury bond rose 0.6 basis points to 2.766%.
Yields and debt prices move in opposite directions.
The Senate Banking Committee is scheduled to meet 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)
(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.
See:Live blog and video of Jerome Powell confirmation hearing (http://blogs.marketwatch.com/capitolreport/2017/11/28/live-blog-and-video-of-jerome-powell-confirmation-hearing/)
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?
A gauge of U.S. consumer confidence rose to 129.5 in October, its highest reading since 2000 (http://www.marketwatch.com/story/feeling-good-consumer-confidence-hits-17-year-high-2017-11-28).
The U.S. trade deficit in goods jumped 6.5% in October to $68.3 billion (http://www.marketwatch.com/story/us-trade-deficit-surges-in-october-advanced-report-shows-2017-11-28), significantly larger than the $65 billion gap produced by a MarketWatch survey of economists.
The S&P/Case-Shiller national index of house prices rose a seasonally adjusted 0.7% in the three-month period ending in September (http://www.marketwatch.com/story/house-prices-rise-at-fastest-pace-since-june-2014-case-shiller-says-2017-11-28), and was up 6.2% compared to the same period a year ago.
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 was scheduled to deliver a speech on financial safety for an aging population at 9 a.m. Eastern, while New York Fed President William Dudley offered opening remarks at a conference on U.S. Treasury markets.
(END) Dow Jones Newswires
November 28, 2017 10:29 ET (15:29 GMT)