Bond Report: Treasury yields tip lower ahead of jobless claims, producer prices http://ift.tt/1YamXgL

Treasury yields edged lower on Thursday as traders braced for a raft of economic data that could set the tone for the rest of the trading session.

What are yields doing?

The benchmark 10-year Treasury yield

TMUBMUSD10Y, -0.72%

fell to 2.330%, from 2.346% on late Wednesday. The shorter 2-year Treasury note yield

TMUBMUSD02Y, -1.32%

ticked lower to 1.513%, from 1.520%, while the 30-year bond yield

TMUBMUSD30Y, -0.47%

slipped to 2.869% from 2.876%. Bond prices move in the opposite direction of yields.

What might drive markets?

With plenty of Fed officials on the docket, investors will try to glean further clues on the path of future monetary policy in the wake of the release Wednesday of the minutes from the central bank’s September policy meeting. Investors speculating on who will take over from Fed Chairwoman Janet Yellen, if she is not reappointed, will eye the appearance of Fed. Gov. Jerome Powell at a panel on monetary policy, where he could burnish his leadership credentials. According to betting markets, Powell is seen as the top candidate to replace Yellen. Treasury Secretary Steven Mnuchin is reportedly encouraging Trump to select him as Fed chief, according to Politico.

See: December rate hike might not be automatic, minutes of last month’s meeting show

Read: Jerome Powell, in the running for top Fed spot, echoes one of Trump’s economic themes

Long-dated Treasurys might feel pressure from a sale of $12 billion of 30-year bonds at 1 p.m. Eastern. Auctions of government paper can often influence outstanding trading.

What are market participants saying?

“With a moderated Q&A session, we’re expecting that Powell won’t divulge much on his economic views (or face a question on his job prospects), but it should help make his candidacy a market focus and possibly push yields a bit higher,” wrote Aaron Kohli, fixed-income strategist for BMO Capital Markets.

What economic data is on investor’s radar?

• Initial jobless claims for the week ending Oct. 7 will come out at 8:30 a.m. Eastern. Economists surveyed by MarketWatch are expecting claims on unemployment benefits to dip to 250,000 from 260,000 the previous week.
• U.S. producer prices for September is also set for release at 8:30 a.m. Economists are forecasting producer prices to jolt higher 0.4% in September.

Which central bankers are talking?

• Powell will deliver a speech on ‘prospects for emerging economies in a normalizing global economy’ at the Institute for International Finance at 10:30 a.m. Eastern
• ECB President Draghi, Former Fed Chief Bernanke and Fed Gov. Lael Brainard on a panel about monetary policy at the Peterson Institute for International Economics at 10:30 a.m. Eastern
• Atlanta Fed President Raphael Bostic will talk about normalizing the balance sheet at 9:15 p.m.