U.S. Treasury yields fell sharply on Tuesday morning, with the 10-year fee losing to hover above 1.74%, as traders remained taken with Russia’s assault on Ukraine.
The yield at the benchmark 10-year Treasury notice fell 9 foundation issues 1.7445% at 6:40 a.m. ET, its lowest level since Jan. 24. The yield at the 30-year Treasury bond dropped 8 foundation issues to two.0956%. Yields transfer inversely to costs and 1 foundation level is the same as 0.01%.
The Russian invasion of Ukraine has entered its 6th day. The assault has roiled world markets and noticed traders glance to protected haven investments like U.S. govt bonds, pushing yields down.
The Kremlin nonetheless desires to seize Kyiv, at the same time as Russian forces proceed working into stiff Ukrainian resistance, in keeping with a Pentagon evaluation shared with CNBC.
Satellite tv for pc imagery has additionally emerged appearing a big convoy of Russian army automobiles, some 40 miles (65km) lengthy, advancing towards Kyiv. The satellite tv for pc photographs have been taken through Maxar Applied sciences on Monday and display a convoy of armored vans touring from time to time two or 3 automobiles abreast at the highway. Professional resources have no longer showed the convoy, alternatively.
Traders might be observing Federal Reserve Chairman Jerome Powell’s testimonies to Congress this week, for any indication on whether or not the Russia-Ukraine struggle will have an effect on the central financial institution’s plans for tightening financial coverage.
Geoffrey Yu, senior marketplace strategist at BNY Mellon, advised CNBC’s “Squawk Field Europe” on Tuesday that markets will be taken with how sanctions towards Russia may purpose provide chain problems and power up costs and, in flip, how policymakers will react.
“Within the U.S., for instance, we do not see this converting the Fed’s trail in any respect,” Yu mentioned.
On the subject of knowledge releases due out on Tuesday, Markit’s ultimate studying for its February production buying managers’ index is slated for unlock at 9:45 a.m. ET.
ISM’s February production PMI is then set to return out at 10 a.m. ET.
There are not any auctions scheduled to be hung on Tuesday.
— CNBC.com personnel contributed to this marketplace document.