Treasury yields were little-changed Tuesday, with government debt trading under the influence of outside markets and technical indicators as investors awaited economic data due later in the week, including the September jobs report.
“We expect sentiment-driven, range-bound trading today ahead of key U.S. [economic] releases later this week (nonmanufacturing ISM, ADP, payrolls). Those data could influence Fed rate increase expectations,” wrote analysts at KBC Bank in Brussels.
The yield on the 10-year U.S. Treasury note edged up 0.2 basis point to 1.626%. The 2-year Treasury yield was flat at 0.802%, while the 30-year Treasury bond yield edged up 0.2 basis point to 2.338%. Yields and debt prices move in opposite directions.
Richmond Federal Reserve President Jeffrey Lacker, in a Tuesday speech, said the Fed should adopt a strategy of pre-emptive interest-rate hikes similar to what it did in 1994. The remarks had little market impact. Lacker isn’t a voting member this year of the central bank’s rate-setting Federal Open Market Committee and has been a consistent advocate for higher rates since last summer.
Independent rates strategist Ian Lyngen said the near-term focus is on the technical landscape.