U.S. Treasury yields tick lower ahead of U.S. data, markets watch for new Covid restrictions

• U.S. Treasury yields moved slightly lower on Wednesday as investors continue to monitor government responses to the rapidly-spreading omicron variant.
• A raft of third-quarter economic data is due Wednesday.
• President Joe Biden delivered a speech Tuesday urging Americans to get vaccinated and said Americans who are fully vaccinated can safely celebrate the holidays.

U.S. Treasury yields moved slightly lower on Wednesday as investors await a raft of U.S. economic data and continue to monitor government responses to the rapidly spreading omicron variant.

The yield on the benchmark 10-year Treasury note dipped 2.4 basis points to 1.463% in premarket trading. The yield on the 30-year Treasury bond moved 2 basis points lower to 1.876%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasurys

U.S. third-quarter GDP growth and price index data is due Wednesday, as well as data for Q3 real consumer spending, consumer confidence, existing home sales, corporate profits, and PCE prices, which represent a measure of the prices U.S. consumers pay for goods and services, essentially capturing inflation.

The U.S. Energy Information Administration will also be releasing its latest data on domestic oil, gasoline and fuel stocks as well as gasoline production and crude oil import figures.

On Tuesday, U.S. President Joe Biden delivered a speech urging Americans to get vaccinated. He also said those who are fully vaccinated can safely celebrate the holidays. The rapidly spreading strain is now the dominant Covid strain in the U.S., representing 73% of sequenced cases.

An increasing number of European countries are considering Christmas restrictions and limiting travel mobility. On Monday, U.K. Prime Minister Boris Johnson said that he would tighten Covid-19 measures if needed, but ruled out new curbs before Christmas.

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Moderna on Monday provided some promising news to markets after announcing that its booster shot offers substantial protection against the omicron variant, according to preliminary data. The European Union meanwhile approved the use of Novavax's Covid-19 vaccine in adults after many delays, in positive news for the U.S. drugmaker that gives Europe its fifth vaccine against the virus.

The Federal Reserve's more hawkish turn on monetary policy also remained in focus for investors, after it said last week that it would speed up the reduction of its monthly bond purchases and signaled it is considering hikes in interest rates in 2022.

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