U.S. Treasury yields rose on Tuesday morning, after lawmakers shared their latest proposal for stimulus spending, to help the country’s economy as it continues to deal with the spread of the coronavirus.
The yield on the benchmark 10-year Treasury note advanced to 0.901% at 5:17 a.m. ET, while the yield on the 30-year Treasury bond rose to 1.637%. Yields move inversely to prices.
Treasury yields climbed after lawmakers put forward another economic relief package on Monday evening, which sees the splitting of the previously proposed $908 billion bipartisan stimulus package into two parts.
A first bill of $748 billion would be for spending on programs that are favored by both Democrats and Republicans, while the second $160 billion bill would be for state and local aid.
The U.S. administered its first shots of the Pfizer–BioNTech coronavirus vaccine on Monday. The country’s confirmed Covid-19 death toll is now well over the 300,000 mark, data compiled by Johns Hopkins University showed.
The Electoral College vote on Monday cemented President-elect Joe Biden’s presidential election victory. The vote is typically a formality and occurs a month after Election Day.
Export and import price data for November is due out at 9:30 a.m. ET, along with December figures out of the New York Empire State manufacturing index.
Industrial production data for November is expected to be released at 10:15 a.m. ET, followed by a December update from the IBD/TIPP economic optimism index at 11 a.m. ET.
October figures for Treasury net capital flows, showing the levels of U.S. investment assets bought and sold that month, are due out at 5 p.m. ET. Foreign bond investment figures in the U.S. for the same month will also come out at 5 p.m. ET, in addition to data for long-term Treasury international capital flows.
A weekly stock change update on crude oil is due out at 5:30 p.m. ET.
Auctions will be held Tuesday for $30 billion of 119-day bills and $30 billion of 42-day bills.
