By David Randall
NEW YORK (Reuters) – A series of upcoming economic reports and Congressional testimony from Federal Reserve Chairman Jerome Powell could jolt U.S. government bonds out of a narrow trading range.
Yields on benchmark U.S. 10-year Treasuries, which move inversely to bond prices, have bounced between about 4.20% and 4.35% since mid-June, as the market digested data showing slowing inflation and signs of cooling economic growth in some indicators. The 10-year yield stood at 4.33% on Friday.
So far, the economic numbers have failed to dispel doubts over how deeply the Fed will be able to cut interest rates this year, keeping Treasury yields range-bound. But next week’s U.S. employment data, followed by inflation numbers and Powell’s appearance could change that outlook.
“The market has settled into a narrative that we may see incremental softness but not a growth scare,” said Garrett Melson, a portfolio strategist at Natixis…
