U.S. Treasury yields were flat on Wednesday morning as investors awaited to hear from Federal Reserve Chairman Jerome Powell.
At around 9:30 a.m. ET, the yield on the benchmark 10-year Treasury note was unchanged at 1.324% and the yield on the 30-year Treasury bond rose less than 1 basis points to trade at 1.86%. Yields move inversely to prices.
U.S. government debt yields had bounced back slightly on Tuesday as the Evergrande-led sell-off eased.
The focus this Wednesday is on what Jerome Powell will say at 2:30 p.m. ET following the central bank’s two-day meeting. Investors are looking for more details on a potential tapering before the end of the year.
Powell has said that slowing down the Fed’s asset purchases should not be seen as a signal about when rate hikes may come. However, hints about tapering and the newest edition of the central bank’s forecasts could change market expectations around interest rates.
On the data front, there will be existing home sales numbers at 10 a.m. ET.
Meanwhile, money managers are also digesting news that the House of Representatives has passed legislation that avoid a government shutdown and suspend the debt ceiling until December 2022. The bill now moves to the Senate, however, where Democrats have a much slimmer majority.
