Treasury yields rose Tuesday as investors digested comments from Federal Reserve Chair Jerome Powell.
The yield on the 10-year Treasury added 2.7 basis points to 4.295%. The 2-year Treasury yield was advanced less than one basis point to 4.62%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Before the Senate Banking Committee, Powell teased in his testimony that the central bank was thinking about getting less restrictive with its monetary policy.
“Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” Powell said in prepared remarks. “More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent.”
Bond yields have been falling in recent months with the benchmark 10-year rate declining nearly 40 basis points since May.
Markets expect the Fed to begin cutting rates in September and likely following up with another…
