August 22, 2017 / 1:29 PM / in 10 months

TREASURIES-Yields rise as investors wait on central bank speeches

    * Jackson Hole conference watched for monetary policy clues
    * ECB's Draghi to speak on Wednesday

    By Karen Brettell
    NEW YORK, Aug 22 (Reuters) - U.S. Treasury yields rose on
Tuesday as investors waited on speeches by top central bankers
this week for further signals about monetary policy, and with no
major economic data.
    Yields fell to almost two-month lows on Friday as political
discord in Washington sparked safety buying and on continuing
concern about tensions between the United States and North
    The bonds have now given back some of that rally as
investors wait on a new catalyst to give the market direction.
    “I think it’s a pattern of consolidation we’ve been falling
into,” said Aaron Kohli, an interest rate strategist at BMO
Capital Markets in New York. “We’ve been looking for a bit of
yield bounce here just because we’ve done nothing but rally on
very little news in the last couple of days.”
    Benchmark 10-year notes             were last down 8/32 in
price to yield 2.21 percent, up from 2.18 percent on Monday. The
yields fell to 2.16 percent on Friday, the lowest since June 27.
    Investors were focused on this week’s annual central banking
conference in Jackson Hole, which begins on Thursday, where
Federal Reserve Chair Janet Yellen and European Central Bank
President Mario Draghi are due to speak.
    Many analysts and investors, however, do not expect that
much new information will emerge at the conference.
    Two sources have said Draghi will not deliver any new policy
message at Jackson Hole, tempering expectations for the bank to
start charting its course out of stimulus.             
    “You can get the market ready for tapering but you can do
that in September and it's widely expected anyway, why add more
fuel to the fire,” said Kohli.
    The Fed is expected to announce a plan to reduce its balance
sheet at its September meeting.
    Draghi will also speak at an event in Germany on Wednesday.
    Stronger stock markets on Tuesday also reduced safety buying
of U.S. debt.              

 (Editing by Meredith Mazzilli)
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