U.S. 10-year treasury yield note and 30-year treasury yield bond were down today. U.S. Treasury yields on Wednesday morning edged lower amid continued hopes that Washington and Tehran were moving toward an agreement after nearly three months of war. The yield on the benchmark U.S. 10-year Treasury note was last down 2.8 basis points to 4.463 per cent. The yield on the 30-year bond had also fallen 2.1 basis points to 5.004 per cent.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a positive 43.2 basis points. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, dipped 2.1 basis points to 4.029 per cent. The 10-year TIPS breakeven rate was last at 2.405 per cent, indicating the market sees inflation averaging about 2.4 per cent a year for the next decade.
The U.S. Treasury is due to hold an auction of 5-year notes in the afternoon while investors await Thursday's releases of key economic data on inflation, durable goods and first-quarter economic growth. Several members of the Fed's policy setting committee were due to speak later Wednesday.
"We're about as unchanged as one can imagine on a day with no real economic data to speak of," said Guy LeBas, chief fixed income strategist at Janney. "The timeline for whatever's going on in Iran to resolve is unknowable but probably a more useful measure of the inflation outlook than the economic data this week."
U.S. and Iranian negotiators have been meeting in Doha to discuss a potential end to the three-month war that has constrained the global oil market, lifting fuel costs and inflation around the world. U.S. Secretary of State Marco Rubio said on Tuesday reaching an agreement could take "a couple of days."
South Korea's Foreign Ministry said Wednesday that an Iranian anti-ship missile was likely involved in an attack on a vessel in the Strait of Hormuz earlier this month. However Tehran denied any involvement.
U.S. stocks are hanging near their records Wednesday as oil prices fall and ease the pressure on households and businesses worldwide. The S&P 500 rose 0.1 per cent and added to its all-time high set the day before. The Dow Jones Industrial Average was up 171 points, or 0.3 per cent, and the Nasdaq composite was 0.1 per cent higher.
Stocks of companies with big fuel bills again helped lead the way on hopes that lower oil prices will remove a big burden for them. Norwegian Cruise Line Holdings rallied 6.8 per cent, and United Airlines climbed 6 per cent.
The price for a barrel of Brent crude oil fell 3.7 per cent to $95.88 as the ceasefire between the United States and Iran appeared to hold despite the U.S. military launching what it called “self-defense” strikes in southern Iran.
