US Yields Maintain Negative Levels

The yield on the benchmark 10-year Treasury remained around 1.3% in mid-July, still at the weakest level since February, down from 1.45% hit earlier during the month as investors digest the Fed’s cautious comments.

Fed Chair Powell said further significant progress toward full employment and price stability remains elusive.

He noted that the bank is not even close to tightening and the inflation will remain elevated for a few months before it calms down.

The annual inflation rate reached 5.4% in June, which is a new high for 2008 and above expectations of 4.9%.