U.S. Treasury yields edged higher Wednesday, with the 10-year at its highest level in nearly two weeks, as investors watched for data on July durable goods orders and awaited an auction of $61 billion five-year notes.

What yields are doing

The 10-year Treasury note yields

1.299%, compared with 1.289% at 3 p.m. Eastern Time on Tuesday. The 10-year Treasury rate hit its highest since Aug. 13 on Tuesday, according to Dow Jones Market Data.

The 30-year Treasury bond rate

was at 1.917%, versus 1.906% a day ago.

The 2-year Treasury note

was yielding 0.250%, compared with 0.224% Tuesday.

What’s driving the market?

Yields were drifting higher ahead of the annual Jackson Hole gathering of central bankers, which is being held virtually this year due to the spread of the delta variant of COVID-19. Federal Reserve Chairman Jerome Powell is scheduled to deliver a key speech at the event but expectations for it have shifted significantly.

Investors have been playing down expectations that Powell will provide any fresh insights on the central bank’s tapering of asset purchases, until the rate-setting Federal Open Market Committee’s September meetings.

Meanwhile, fixed-income investors watched the U.S. House pass a measure, in a 220-212 vote, approving a $3.5 trillion budget proposal and locking in a late September vote on an important $1 trillion infrastructure bill already passed by the Senate.

In U.S. economic data, investors await a report on July orders for long-lasting goods—products designed to last at least three years such as autos and airplanes, which is due at 8:30 a.m. Eastern Time.

Investors may also watch a sale of $61 billion in 5-year notes

later in the session.

Outside the U.S., the Ifo business climate index, highlighted the weakness of Germany’s economy relative to European peers, declining for the second month in a row in August, underscoring lingering concerns about the spread of the delta variant.

What analysts are saying

“The IFO said ‘In the hospitality and tourism sectors in particular, concerns are growing,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group, in a note.

“On the other hand, companies rated the current situation somewhat better than in the previous month,” he said. “A stagflationary situation. The euro is down slightly but bond yields are higher along with the slow creep up in US Treasury yields with the US 10 yr at 1.30%,” he added.

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