US Treasury yields fluctuate as investors await Iran deal announcement

  • On Tuesday, Fed Chair Jerome Powell said that the U.S. central bank's interest rate hikes may not end up having as great of a risk on emerging market economies and stock markets as many had initially thought.
  • The U.S. Treasury is scheduled to auction $45 billion in four-week bills and $31 billion in three-year notes.

U.S. government debt prices hovered above and below the flat line on Tuesday.

The yield on the benchmark 10-year Treasury note was slightly higher at around 2.951 percent at 4:20 a.m. ET, while the yield on the 30-year Treasury bond was flat at 3.120 percent. Bond yields move inversely to prices.

Symbol
Yield
  
Change
%Change
---
---
---
---
---
---

For Tuesday's trading day, politics, and news about the economy is set to keep investors on edge.

First off, international and domestic markets are keeping a close eye on the U.S. administration Tuesday, after President Donald Trump said that he would make an announcement on the Iran nuclear deal during the day.

In the past, Trump has often threatened to withdraw the U.S. from the Iran deal — which lifted sanctions on the Middle Eastern nation, in return for the country to pull back on its nuclear ambitions — unless allies in Europe amend what he sees as shortcomings of the agreement.

In spite of the U.S. incumbent's threats to withdraw, President Hassan Rouhani stated that Iran had a plan to counter any move made by Trump when it comes to the deal; Reuters reported. It may be widely expected that the U.S. will withdraw, however Rouhani said on Tuesday that Iran would continue to seek "constructive relations with the world," despite potential sanctions.

Elsewhere, data remains of key importance. On the economic front, the NFIB Small Business Optimism Index is scheduled to be released at 6 a.m. ET, followed by the Job Openings and Labor Turnover Survey (JOLTS) at 10 a.m. ET.

Meantime in auctions news, the U.S. Treasury is scheduled to auction $45 billion in four-week bills and $31 billion in three-year notes.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

In the central banking space, Fed Chair Jerome Powell has delivered remarks in Zurich Tuesday. Speaking at the Swiss National Bank and International Monetary Fund's High Level Conference on the international monetary system, Powell said that the U.S. central bank's interest rate hikes may not end up having as great of a risk on emerging market economies and stock markets as many had initially thought.

The head of the U.S. Federal Reserve went on to add that the central bank would however continue to communicate its policy strategy as "clearly and transparently as possible to help align expectations and avoid market disruptions."