US government debt prices rose Tuesday morning after Federal Reserve Chairman Jerome Powell emphasized the lingering uncertainty facing the US economy, as cases of Coronaviruses soar in numerous states.
Around 2:05 am ET, the yield on the benchmark 10-year Treasury bond was 0.6283% lower and the yield on the 30-year Treasury bond fell to 1.3780%. Yields move inversely to prices.
In remarks prepared for a hearing in Congress on Tuesday, Powell said that despite a recent surge in economic activity as the blockade measures ease in the world’s largest economy, the outlook is “extraordinarily uncertain” and it will depend on whether they contain the virus and government support for recovery.
Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 pm ET on Tuesday.
Meanwhile, coronavirus cases continue to rise across the country, forcing states like New Jersey, Arizona and Kansas to roll back plans to further ease the blockade measures. A Reuters count showed California hit a daily record peak in new Covid-19 cases on Monday when Los Angeles health officials warned that hospitals could be overwhelmed.
According to data compiled by Johns Hopkins University, the United States has confirmed more than 2.59 million coronavirus cases with more than 126,000 deaths, and Dr. Anne Schuchat, deputy chief director of the Centers for Disease Control and Prevention, said on Monday that the virus is spreading too fast in the country to be controlled.
With more than 10.3 million cases worldwide, the Director-General of the World Health Organization, Tedros Adhanom Ghebreyesus, warned on Monday that the pandemic “is not even close to ending.”
S & P / Case-Shiller home price data for April is due at 9 am ET on Tuesday.
The auctions will be held Tuesday for $ 35 billion in 119-day Treasury bills and $ 35 billion in 42-day bills.
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