Treasury yield fell on Tuesday as investors awaited for details over the next stimulus deal with top lawmakers remaining divided.
U.S. lawmakers have been discussing a new round of fiscal stimulus as the coronavirus pandemic continues to take a toll on the economy. Policymakers in the U.S. Congress seemed to agree that a second round of stimulus checks is needed, but have not yet reached a deal over the details, including on how much dependents should get.
The Senate is set to leave on a break Friday, when the key July jobs report is released.
About 1.264 million new jobs are expected, well below the 4.8 million added in June, and the unemployment rate is expected to fall to 10.6% from 11.1%, according to Dow Jones estimates.
“The most relevant question has quickly become whether the resurgence of Covid-19 has materially slowed jobs growth and if so, the extent to which the shift is permanent or simply a delay,” Ian Lyngen, BMO’s head of U.S. rates, said in a note Tuesday.
The U.S. Treasury is due to auction $30 billion in 42-day Commercial Mortgage-Backed Securities (CMBS) and another $30 billion in 119-day CMBS on Tuesday.
— CNBC’s Silvia Amaro contributed reporting.