Bond Report: Treasury yields tick lower as House set to vote on impeachment articles

U.S. Treasury yields tick lower on Tuesday as investors keep an eye on impeachment proceedings against President Donald Trump. Read More...

U.S. Treasury yields ticked lower on Tuesday as investors keep an eye on impeachment proceedings against President Donald Trump, a political flashpoint for bond-market traders.

What are Treasurys doing?

The 10-year Treasury note yield TMUBMUSD10Y, +0.05% fell 1.4 basis points to 1.874%. The 2-year note yield TMUBMUSD02Y, +0.26% down 0.6 basis point to 1.627%. The 30-year bond yield TMUBMUSD30Y, +0.06% edged 1.6 basis points lower to 2.300%.

What’s driving Treasurys?

Investors will take a glance at Washington as the House of Representatives votes on the articles of impeachment against President Donald Trump later Wednesday. So far, markets have paid little attention to the political drama, amid questions whether an impeachment vote will make any headway in the Senate, analysts said.

Read: Here’s what’s happening next in Democrats’ effort to impeach President Trump

The House had also approved a $1.4 trillion spending package on Tuesday to avoid a partial government shutdown. Congress needs to pass the bills by Friday to avoid the closure of the federal government.

Corporate results from FedEx FDX, -0.53% indicated the global economic growth headwinds facing the manufacturing sector, which has weighed on demand for freight shipping. “The industrial economy does not reflect any growth at all, worldwide, to speak of,” said FedEx CEO Fred Smith during its second-quarter earnings conference call.

See: FedEx stock falls on disappointing earnings, outlook

As for the Federal Reserve, Chicago Fed President Charles Evans will speak later at 12:40 p.m. ET, in his first remarks since the December meeting. On Tuesday, Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan indicated expectations for no rate changes at all next year.

What did market participants’ say?

“It is, however, widely expected that the Republican-led Senate will ultimately acquit Mr Trump. This, and other factors bode well for Mr Trump,” said rates analysts at Rabobank.

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