U.S. government debt prices were lower on Wednesday after President Donald Trump proposed not to sign a lengthy coronavirus bailout package.
The benchmark 10 year Treasury note yield rose to 0.921%, while the yield on the 30 year Treasury note was slightly higher at 1.655%. Bond yields move inversely with prices.
Trump on Tuesday poured cold water on the $ 900 billion Covid bill passed by Congress earlier this week. Calling the measure an inappropriate “disgrace”, he called on lawmakers to make a number of changes, including larger direct payments to individuals and families.
The current package includes an increase in unemployment benefits, more small business loans, an additional $ 600 in direct payment, and funding to streamline the critical distribution of Covid-19 vaccines. However, Trump was dissatisfied with the $ 600 direct payments and requested an increase to $ 2,000.
Investors were also upset this week by a new strain of coronavirus first identified in the UK. The variant is believed to be up to 70% more transmissible than previous strains.
Regarding economic data, durable goods, unemployment claims, personal income and expenses, new home sales, consumer sentiment and reports of the FHFA house price index are due to be released on Wednesday.