October 29, 2020

Treasury yields move lower amid talks over new stimulus checks

U.S. government debt prices were higher Tuesday morning as investors waited for details over new fiscal stimulus.

At around 2:40 am ET, the yield on the benchmark 10-year Treasury note dropped to 0.5592% and the yield on the 30-year Treasury bond fell to 1.2374%. Yields move inversely to prices.

U.S. lawmakers have been discussing a new round of fiscal stimulus as the coronavirus pandemic continues to take a toll on the economy. Policymakers in the U.S. Congress seemed to agree that a second round of stimulus checks is needed, but have not yet reached a deal over the details, including on how much dependents should get. 

On the data front, factory orders are due at 10 a.m. ET.

The U.S. Treasury is due to auction $30 billion in 42-day Commercial Mortgage-Backed Securities (CMBS) and another $30 billion in 119-day CMBS on Tuesday.

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