U.S. government debt prices were slightly higher on Wednesday morning, as investors monitored the spread of the coronavirus and looked ahead to a rate decision by the Federal Reserve.
At 2 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.6355%, while the yield on the 30-year Treasury bond was also lower at around 2.0872%. On Tuesday, the three-month Treasury bill briefly inverted with the 10-Treasury note for the first time since October.
Chinese authorities confirmed that the death toll has risen to 132 and the number of total cases has reached 5,974. Global investors have shown concerns about the impact of the virus on the overall economy. The White House has reportedly told airlines that it is considering suspending all flights from China to the U.S.
Meanwhile, investors will be monitoring the Federal Reserve‘s first policy meeting of the decade. The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 1.5-1.75% in December, following three consecutive rate cuts. Its latest announcement is due at 2 p.m. ET, followed by remarks from Fed Chairman Jerome Powell at 2:30 p.m. ET.
On the data front, there will be advanced economic indicators at 8:30 a.m. ET and pending home sales at 10 a.m. ET.