Treasury yields rise as Democrats push forward with stimulus

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The 10-year U.S. Treasury yield held above the 1.1% mark early on Wednesday, as Democrats pushed forward with trying to pass President Joe Biden’s $1.9 trillion stimulus plan.

The yield on the benchmark 10-year Treasury note climbed to 1.11% at 4 a.m. ET, while the yield on the 30-year Treasury bond rose to 1.884%. Yields move inversely to prices.

Treasurys

U.S. government bond yields advanced on Wednesday, after Democrats took their first votes in Congress on Tuesday night, to pass the proposed stimulus package without Republican support.

The Senate voted in a 50-49 party line vote to advance a budget resolution, with Democrats holding a narrow majority in the upper house. The House also voted in favor of going forward with the budget measure in a 216-210 vote.

Traders will be keeping an eye out for the ADP employment change January report, due out at 8:15 a.m. ET, which shows the monthly changes in private employment in the U.S.

The final Markit purchasing managers’ index (PMI) data for January is expected at 9:45 a.m. ET.

ISM non-manufacturing data including business activity, prices, employment, PMI and new orders in January is expected at 10 a.m. ET.

A weekly EIA update on stock changes for crude oil, Cushing crude oil, distillate and gasoline is set to be released at 10:30 a.m. ET.

James Bullard, president of the Federal Reserve Bank of St. Louis, is due to make a speech at 1 p.m. ET. Philadelphia Fed President Patrick Harker will speak at 2 p.m. ET, followed by Cleveland Fed President Loretta Mester, as well as Chicago Fed President Charles Evans at 5 p.m. ET, and Dallas Fed President Robert Kaplan at 6 p.m. ET.

Data for total vehicle sales in the U.S. in January is expected to be released at 7 p.m. ET.

Auctions will be held Wednesday for $25 billion of 105-day bills and $30 billion of 154-day bills.

CNBC’s Jacob Pramuk contributed to this report.

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