U.S. Treasury yields rose slightly on Tuesday morning, after U.S. regulators granted the Pfizer-BioNTech Covid vaccine full approval, potentially aiding the economic recovery.
The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.268% at 4:20 a.m. ET. The yield on the 30-year Treasury bond added 1 basis point, advancing to 1.888%. Yields move inversely to prices.
The U.S. Food and Drug Administration on Monday gave the Pfizer-BioNTech coronavirus vaccine full approval, making it the first in the country to receive the designation.
This could see more businesses adopt vaccine mandates, helping to combat the rapid spread of the delta variant. In turn, this could boost the economic recovery, with recent data having shown a slowdown in consumer spending and sentiment amid the spread of the highly contagious delta variant.
The Federal Reserve is using the economic recovery to gauge when it will start paring back its easy monetary policy.
Central bankers from around the world are due to meet virtually on Thursday for the Fed’s annual Jackson Hole symposium to discuss monetary policy.
Fed Chairman Jerome Powell will then make a speech at 10 a.m. ET on Friday morning, with investors watching for an indication as to when the U.S. central bank plans to wind down its bond purchasing program.
In terms of data due out on Tuesday, the number of new homes sold in the U.S. in July is due to be released at 10 a.m. ET.
Auctions will be held on Tuesday for $40 billion of 67-day bills and $60 billion of 2-year notes.
