On Wednesday U.S. government debt prices were muted as investors monitored potential stalls on both a federal stimulus package and Covid-19 vaccine and treatment trials.
The 10-year Treasury yield traded at 0.712%. The 30-year bond rate dipped to 1.5%. Yields move inversely to prices. Democrats and Republicans remain at odds over the size and scope of a potential coronavirus relief bill, with House Speaker Nancy Pelosi saying Tuesday that a $1.8 trillion package proposed by the White House “falls significantly short.”
Senate Majority Leader Mitch McConnell said Tuesday that the Senate will vote on a limited stimulus bill later this month. Some headwinds for risk-on sentiment arose after Eli Lilly said Tuesday afternoon that it would pause its trial of a coronavirus antibody treatment. This followed Johnson & Johnson’s earlier announcement that it halted its vaccine trial after an “adverse event” was reported.