U.S. Treasury Yields Mixed Following Fed Chair Remarks

The United States Treasury yields showed a mixed performance on Tuesday, following the testimony of the Federal Reserve Chairman Jerome Powell to the Senate.

Return on the 10-year Treasury bond declined by 0.7 basis point to 1.363%, giving up its earlier gains as it reached 1.39%.

The 30-year bond yield increased by 2 basis point to 2.201%, reaching its highest level since January 2020.

Meanwhile, the two-year bond yield remained nearly unchanged at 0.115%.

Powell played down the risk of a sudden unwanted surge in inflation, and noted that it will take some time for the monetary policy to achieve its employment and inflation targets as economic recovery is still far from being complete.

Powell also told the Senate Banking Committee that modifications to the asset-purchase program will be communicated prior to any decision.