Treasury Was Stabilized Before Fed Chairman Powell’s Statement
Treasury returns were steady on Tuesday, before Federal Reserve President Jerome Powell spoke to address the Central Bank‘s response to the coronavirus outbreak.
The yield on comparative 10-year Treasury bond remained flat at 0.633 percent, while the return on 30-year Treasury bond fell slightly at 1.384 percent. Yields are moving in the opposite direction to prices.
In a statement prepared for Tuesday’s congressional hearing, Powell said that despite the recent increase in economic activity, restriction measures have been mitigated in the world’s largest economy and the outlook will be based on state support to support both the virus and recovery as “extraordinarily ambiguous”.
Powell and Treasury Secretary Steven Mnuchin will make a statement Tuesday, at 12:30 in front of the Financial Services Committee.
Meanwhile, coronavirus cases continue to increase across the country, and are pushing states such as New Jersey, Arizona, and Kansas to withdraw plans to ease restriction measures. Reuters showed that California recorded a record increase in new cases Monday.
According to data compiled by Johns Hopkins University, the U.S. has now approved more than 126,000 deaths, with more than 2.59 million coronavirus cases.
Deputy General Manager of Disease Control and Prevention Centers Anne Schuchat said on Monday that the virus has spread much faster in the country that needs to be controlled.
Tedros Adhanom Ghebreyesus, Director General of the World Health Organization, warned on Monday that more than 10.3 million cases that worldwide the outbreak “is not even close to the end”.