Treasury yields move following strong 10-year auction

U.S. Treasury yields dipped on Wednesday, after strong demand in an auction for $38 billion of 10-year notes on Tuesday.The yield on the benchmark 10-year Treasury note fell to 1.119% at 4:40 a.m. ET, while the yield on the 30-year Treasury bond slipped to 1.857%. Yields move inversely to prices.Treasury yields continued to fall back from highs in the previous session, as the auction cleared at a yield of 1.164%, compared to a six reopening average of 0.781%, as investors bought the government bonds at the highest yields in months amid inflation risks. Nondealers bid 80%, versus a 73.6% average.Another auction for $24 billion of 29-year 10-month bonds is due to be held Wednesday, as well as sales for $25 billion of 105-day bills and $30 billion of 154-day bills.Meanwhile, political turmoil in the U.S. continues to weigh on investors’ minds, after Vice President Mike Pence said on Tuesday evening that he would not remove President Donald Trump from office.This was shortly before the House passed a measure calling on Pence and the Cabinet to push Trump out of the White House after he incited last week’s riots in the Capitol.December inflation data for the U.S. is due to be released at 8:30 a.m. ET.Weekly EIA stock change figures for crude oil, Cushing crude oil, distillate and gasoline are expected out at 10:30 a.m. ET.The monthly budget statement from the U.S. government for December is expected to be published at 12 p.m. ET.James Bullard, president of the Federal Reserve Bank of St. Louis, will make a speech at 9:30 a.m. ET. Fed Governor Lael Brainard will speak at 1 p.m. ET, followed by Philadelphia Fed President Patrick Harker at 2 p.m. ET and Fed Vice Chair Richard Clarida at 3 p.m. ET.— CNBC’s Yun Li and Jacob Pramuk contributed to this report.

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