U.S. Treasury bond yields have declined moderately, while market participants are cautious ahead of the release of new U.S. economic data and speeches by Fed policymakers that will help clarify the trajectory of interest rates.
The yield on 5-year Treasury bonds fell by 2.1 basis points, reaching 4.252%, while the yield on 30-year bonds was 4.587% (-0.5 basis points). Meanwhile, the yield on 2-year Treasury bonds, reflecting expectations of short-term interest rates, decreased by 1.5 basis points to 4.293%, while the yield on 10-year bonds fell to 4.39% (-1.6 basis points).
Investors continue to follow the latest developments in the Russian-Ukrainian war, which have increased tensions between Washington and Moscow. Market participants are also carefully studying Donald Trump's potential candidates for the post of finance minister, taking into account the level of experience and track record of the candidates.
As for the US economic data, the weekly report on initial jobless claims, statistics on existing home sales for October, as well as leading indicators for October will be presented later today. Economists expect that initial jobless claims rose to 223 thousand from 217 thousand a week earlier, existing home sales increased to 3.93 million from 3.84 million in September, and leading indicators fell 0.3% after a 0.5% decline in September.
Also scheduled to speak today are Cleveland Fed President Beth Hammack, Chicago Fed President Austan Goolsbee, Kansas City Fed President Jeff Schmid and Fed Vice Chair for Supervision Michael Barr.