On Tuesday U.S. Treasury yields moved higher, ahead of Georgia’s runoff elections later in the day, which will determine whether Republicans keep hold of the Senate. The yield on the benchmark 10-year Treasury note rose to 0.9315% at 4:35 a.m. ET, while the yield on the 30-year Treasury bond moved up to 1.6797%. Yields move inversely to prices.
Treasury yields climbed ahead of the pivotal runoff vote. If the Democrats gain control of the Senate some fear this could mean higher tax rates, but it could also lead to a bigger and faster government stimulus spending package. December ISM manufacturing data for new orders, prices, employment and its purchasing managers’ index is due out at 10 a.m. ET.
John Williams, president of the Federal Reserve Bank of New York, is expected to make a speech at 3:45 p.m. ET, along with Chicago Fed President Charles Evans. Weekly API crude oil stock change figures are due to come out at 4:30 p.m. ET.