U.S. Treasury yields inched higher on Wednesday morning, ahead of the Federal Reserve releasing its economic projections later today.
The yield on the benchmark 10-year Treasury note rose to 0.923% at 4:20 a.m. ET, while the yield on the 30-year Treasury bond climbed to 1.672%. Yields move inversely to prices.
U.S. government bonds rose slightly, with the Fed expected to sound very dovish at the end of its meeting on Wednesday.
It is expected that the Fed will have an improved long-term view due to the rollout of the coronavirus vaccine, when it releases its economic outlook at 2 p.m. ET. It will hold a press conference at 2:30 p.m. ET.
Some investors expect the U.S. central bank will change the duration of the bonds it is buying, while others just expect it to detail guidelines it will use to make changes to the program.
House Speaker Nancy Pelosi called a meeting of congressional leaders on Tuesday to discuss the coronavirus relief funding. Senate Majority Leader Mitch McConnell told reporters as he was leaving the Capitol that “significant progress” was being made on the stimulus package, according to NBC News.
Retail sales data for November is due out at 9:30 a.m. ET, while December figures from the Markit purchasing managers’ index is expected at 10:45 a.m. ET.
Business inventories data for October will be released at 11 a.m., along with a December update for the NAHB housing market index.
Weekly stock change figures for gasoline, crude oil, Cushing crude oil and distillate are expected out at 11:30 a.m. ET.
Auctions will be held on Wednesday for $25 billion of 105-day bills and $30 billion of 154-day bills.
— CNBC’s Patti Domm contributed to this article.
