Treasury yields climbed on Tuesday as negotiations continue in Washington over a massive fiscal stimulus package to combat the coronavirus pandemic.
The yield on the benchmark 10-year Treasury note rose six basis points to 0.816%, while the yield on the 30-year Treasury bond climbed five basis points to 1.398%.
Senate leaders and the Trump administration are moving closer to reaching an agreement on a $2 trillion stimulus deal to blunt the negative economic impact from the coronavirus pandemic.
Senate Minority Leader Charles Schumer said he expects an agreement on Tuesday. Negotiations on the bill were set to continue Tuesday morning.Â
"We expect to have an agreement tomorrow morning," Schumer told reporters Monday night. "There are still a few little differences. Neither of us think they are in any way going to get in the way of a final agreement."
The bill to authorize huge fiscal spending to prop up the economy failed in the Senate for a second time Monday, initially sending the 10-year yield below 0.7% and Wall Street deeper into a bear market with its major indexes hitting new multi-year lows.
On the monetary side, the Federal Reserve on Monday pledged an unlimited asset purchase program in a bid to ensure markets continue to function properly.
U.S. Markit flash composite, goods and services PMI (Purchasing Managers' Index) readings for March are set for publication at 9:45 a.m. ET on Tuesday, before new home sales figures for February at 10 a.m. ET.
Auctions will be held Tuesday for $26 billion of 52-week Treasury bills and $40 billion of 2-year Treasury notes.