Authorities bond yields fall as merchants weigh the most recent information on coronavirus and stimuli
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U.S. government debt prices rose slightly on Wednesday as investors monitored stalls on both a federal stimulus package and vaccine and treatment trials with Covid-19.
The yield on 10-year government bonds fell to 0.7%. The 30-year bond rate fell to 1.48%. The returns move inversely to the prices.
"The main concern in the market is Washington about the uncertainty surrounding fiscal stimulus," said Roderick von Lipsey, managing director of UBS Private Wealth Management. "With the political tug-of-war over an economic stimulus package, the markets wait to see how much and when."
Democrats and Republicans remain at odds over the size and scope of a potential coronavirus relief bill. House spokeswoman Nancy Pelosi said Tuesday that a $ 1.8 trillion package proposed by the White House was "seriously neglected."
Senate Majority Leader Mitch McConnell said Tuesday that the Senate would vote on a limited stimulus plan later this month.
On Wednesday, Treasury Secretary Steven Mnuchin said it would be difficult to reach an agreement before the election, adding that the two sides are still far apart on certain issues. However, he also noted that Democrats and Republicans are making progress in some areas.
Some headwinds to risk sentiment arose after Eli Lilly announced Tuesday afternoon that she would be abandoning attempt at treatment with coronavirus antibodies. This followed Johnson & Johnson's earlier announcement that it would stop the vaccine trial after an "adverse event" was reported.
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