Treasury yields tick lower; US-China trade talks in focus

  • The U.S. Treasury is set to auction $24 billion in 9-year and 10-month notes on Wednesday.
  • Elsewhere, Federal Reserve Chairman Jerome Powell is scheduled to deliver the opening remarks at an event in Kansas City.
  • It comes after Powell said Tuesday that policymakers at the U.S. central bank would be open to further interest rate cuts over the coming months.

U.S. government debt prices were higher Wednesday morning, as investors looked ahead to U.S.-China trade talks.

U.S. Markets Overview: Treasurys chart

At around 03:00 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.5255%, while the yield on the 30-year Treasury bond was also lower at around 2.0279%.

Market focus is largely attuned to global trade developments, with high-level negotiators from the U.S. and China poised to meet for a fresh round of talks in Washington, D.C., on Thursday.

The long-running dispute has slowly expanded beyond trade policy, exacerbating fears about further damage to a fragile global economy.

President Donald Trump has said tariffs on Chinese imports will increase on October 15 if no progress is made in bilateral trade negotiations.

On the data front, wholesale trade figures for August and Job Openings and Labor Turnover Survey (JOLTS) data for August will both be released at around 10:00 a.m. ET.

The U.S. Treasury is set to auction $24 billion in 9-year and 10-month notes on Wednesday.

Elsewhere, Federal Reserve Chairman Jerome Powell is scheduled to deliver the opening remarks at an event in Kansas City.

It comes after Powell said Tuesday that policymakers at the U.S. central bank would be open to further interest rate cuts over the coming months. He also suggested that the time to allow the Fed's asset holdings to begin to expand was "now upon us."

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