U.S. Treasury yields slipped on Tuesday as President Donald Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates ahead of the central bank’s policy meeting next week.
Tuesday’s price moves extended Monday’s bond rally, which was driven by technical demand and renewed investor worries over the economic impact of U.S. tariffs. Those concerns continued to loom over the bond market, particularly given the limited amount of economic data releases on Tuesday and as Federal Reserve officials were in quiet mode ahead of the central bank’s rate-setting meeting next week.
“There’s not a lot of economic news coming out and we have the Fed meeting next week … so it feels like we’re in this very tight trading range where maybe some headline news may jolt the market a little bit,” said Douglas Gimple, senior portfolio specialist at Diamond Hill.
“I think everyone’s in wait and see (mode),” he said.
