U.S. government debt prices were higher on Tuesday morning as investors navigated a market sell-off in equities and awaited for details from the Federal Reserve.
At around 1:30 a.m. ET, the yield on the benchmark 10-year Treasury note dropped 17 basis points to trade at 1.3220% and the yield on the 30-year Treasury bond fell 15 basis points to trade at 1.8625%. Yields move inversely to prices.
On Monday, the 10-year Treasury yield dropped below 1.31% as investors crowded into bonds.
The market sell-off that started Monday comes after China’s second-largest developer, Evergrande, is on the brink of collapse. This has raised wider concerns about high levels of debt.
Furthermore, investors are waiting to hear from Fed Chairman Jerome Powell on Wednesday after a two-day meeting. The central bank is expected to give indications about its future rate path.
On the data front, there will be housing starts, building permits, current accounts and the Philly Fed manufacturing numbers out at 8:30 a.m. ET.
