U.S. Treasury Yields Off Session Highs Following Powell Testimony

Treasury yields in the United States continued to rise on Wednesday but gave up their record high levels seen earlier today, following remarks by the Federal Reserve Chair Jerome Powell.

Selling pressure of long-term debt instruments continued amid concerns about a rise in inflation, however, Powell delivered a calming message that ruled out inflation getting out of hand rapidly.

In his testimony to the House of Representatives, Powell said that the economy still needs some time to achieve the inflation and employment targets, and until then the Fed does not plan to raise interest rates or change its easing policy or cut back on asset purchases.

The benchmark 10-year Treasury bond yield increased by 2.5 basis points to 1.374%, after exceeding 1.4% earlier for the first time in about a year and reaching 1.42%.

Return on the 30-year bond increased by 2.6 basis points to 2.225%.

Meanwhile, the yield on the two-year bond leveled up by 0.3 basis points to 0.125%.