U.S. government debt prices rose Wednesday morning as doubts resurfaced over a swift resolution to the stalemate between lawmakers on a new coronavirus relief bill.
Lawmakers on Tuesday ended a fourth consecutive day without the resumption of talks over an additional fiscal stimulus package, with the previous deadline set by the White House having elapsed Friday and Congressional Democrats and Republicans blaming each other for a refusal to compromise.
The U.S. Treasury will auction a record $38 billion of 10-year notes on Wednesday, along with $25 billion of 105-day bills and $30 billion of 154-day bills.
Yields had spiked on Tuesday after Labor Department data showed that U.S. producer prices rebounded in July, though the overall trend in producer inflation remained muted.
After the bell on Tuesday, President Donald Trump said the U.S. government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials.
Meanwhile, Russian local news agencies reported that President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine.
On the data front, July’s core inflation rates will be published at 8:30 a.m. on Wednesday.
– CNBC’s Yun Li and Maggie Fitzgerald contributed to this report.