Treasury yields dip as investors look to remarks from Fed Chairman Powell
U.S. Treasury yields pulled back on Tuesday as investors awaited comments from Federal Reserve officials that could provide fresh hints about the economic outlook.
At 4:20 a.m. ET, the yield on the 10-year Treasury was trading at 3.6192% after falling by just over one basis point. The 2-year Treasury yield was last down by over three basis points to 4.4226%.
Prices and yields move in opposite directions. One basis point equals 0.01%.
Fed speakers including Chairman Jerome Powell are due to make remarks on Tuesday. Investors will be scanning the comments for clues about what central bankers expect from the economy, especially in relation to inflation easing and a looming recession.
After the Fed’s latest meeting ended last week, Powell said disinflation had begun, but also indicated that the central bank would continue its efforts to cool the economy and ease inflationary pressures.
That could include further interest rate hikes, which the Fed has implemented at each of its last eight meetings. Many investors are concerned about whether the rate increases have gone too high, too quickly and will therefore drag the U.S. economy into a recession.
Further Fed speakers are due to make remarks as the week continues.
On the data front, investors will be following the release of December’s balance of trade report on Tuesday, and corporate earnings season continues.
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