August 25, 2017 / 1:29 PM / a year ago

TREASURIES-Bonds steady before Yellen, Draghi speeches

    * Fed's Yellen, ECB's Draghi to speak on Friday
    * Capital goods orders rose in July

    By Karen Brettell
    NEW YORK, Aug 25 (Reuters) - U.S. Treasury prices were
steady as investors awaited indications of monetary policy from
speeches by prominent central bankers gathered in Jackson Hole,
    Federal Reserve Chair Janet Yellen and European Central Bank
President Mario Draghi are both due to address the annual
economic policy conference in the Rocky Mountains.
    “Everything comes down to what Yellen is going to say,” said
Mary Ann Hurley, vice president in fixed income trading at D.A.
Davidson in Seattle.
    Investors will be watching to see if Yellen gives any
indication on when the Fed plans to begin reducing its balance
sheet, as well as how she references ongoing weakness in
    “It will be interesting to see how she touches on inflation
and whether she keeps addressing it as being due to
idiosyncratic factors,” said Hurley.
    Market participants will be also watching for any signals
that the ECB is close to paring its bond purchases, though two
sources have told Reuters that Draghi will not deliver any new
policy message at the event.             
    Benchmark 10-year notes             were down 1/32 in price
to yield 2.20 percent, little changed from Thursday.
    Yields for benchmark bonds have held in a tight range since
falling to almost two-month lows last Friday on concerns about
political discord in Washington and tensions between the United
States and North Korea.
    Data this Friday showed that new orders for key U.S.-made
capital goods rose slightly more than expected in July and
shipments surged, pointing to an acceleration in business
spending early in the third quarter.             

 (Reporting by Karen Brettell; Editing by W Simon)
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