Bonds

Treasury yields fall, continue retreat from last week's spike

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Key Points
  • Investors on Tuesday kept a close watch on comments made by both Securities and Exchange Commission Chair nominee Gary Gensler and Federal Reserve Governor Lael Brainard.
  • Bonds prices were boosted by comments from Guo Shuqing, chair of the China Banking and Insurance Regulatory Commission.

U.S. Treasury yields fell again on Tuesday as the bond market recovered from its selloff last week.

The yield on the benchmark 10-year Treasury note fell to 1.403%. The yield on the 30-year Treasury bond was slid to 2.22%. Yields move inversely to prices.

Treasurys

Bonds prices were boosted by comments from Guo Shuqing, chair of the China Banking and Insurance Regulatory Commission, who warned about high asset prices in developed countries, including the United States.

"We got an 'irrational exuberance' like utterance out of not a current Federal Reserve member or a developed world central banker but from Guo Shuqing ... He's not talking about China though, he's talking about us," Bleakley Advisory Group's Peter Boockvar said in a note.

Treasury yields ebbed lower on Monday, with the 10-year falling back from last week's highs, when it topped 1.6%.

Investors on Tuesday will be keeping a close watch on comments made by both Securities and Exchange Commission Chair nominee Gary Gensler and Federal Reserve Governor Lael Brainard.

Brainard delivered a speech entitled "U.S. Economic Outlook and Monetary Policy" via a virtual meeting hosted by the Council on Foreign Relations, at which she said that she expects the U.S. to see a "transitory rise above 2%" inflation.

Gensler testified before the Senate Banking Committee as he takes steps toward confirmation.

An auction was held Tuesday for $30 billion of 42-day bills.

CNBC's Thomas Franck and Kayla Tausche contributed to this report.