Treasury yields fell on Monday morning, after Federal Reserve Chairman Jerome Powell on Sunday reiterated the central bank’s commitment to maintaining loose monetary policy.
The yield on the benchmark 10-year Treasury note fell to 1.646% at 4 a.m. ET. The yield on the 30-year Treasury bond dipped to 2.313%. Yields move inversely to prices.
Powell told CBS 60 Minutes in an interview that aired Sunday that it was “highly unlikely” that the Fed would raise interest rates “anything like this year.”
“I’m in a position to guarantee that the Fed will do everything we can to support the economy for as long as it takes to complete the recovery,” he added.
Investors will be watching out for developments on President Joe Biden’s infrastructure package, known as the American Jobs Plan. Biden is due to meet with bipartisan members of Congress on Monday to try to get backing for his $2 trillion infrastructure plan.
Meanwhile, an auction for $38 billion of 10-year notes will also likely be in focus, as a key gauge of investor appetite for government debt. Auctions are scheduled to be held for $57 billion of 13-week bills, $54 billion of 26-week bills and $58 billion of 3-year notes.
