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U.S. government debt prices were higher Thursday morning, after dovish comments from Federal Reserve Chairman Jerome Powell supported the case for an interest rate cut later this month.
U.S. Markets Overview: Treasurys chart
At around 03:30 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.0491%, while the yield on the 30-year Treasury bond was also lower at around 2.5563%.
In his first day of testimony before Congress on Wednesday, the head of the U.S. central bank pointed to “broad ” global weakness that was clouding the U.S. economic outlook. His comments bolstered the case for easier monetary policy in the world’s largest economy.
In addition to Powell’s relatively dovish testimony, the minutes from the Fed’s previous policy showed many policymakers thought more policy stimulus would be required soon.
Investors are also likely to monitor the latest weekly jobless claims, consumer price index (CPI) figures and core CPI data for June at around 8:30 a.m. ET. Federal budget data is scheduled to be released slightly later in the session.
Meanwhile, the U.S. Treasury is set auction $35 billion in 4-week bills, $35 billion in 8-week bills and $16 billion in 29-year 10-month bonds on Thursday.