U.S. Treasury yields fell slightly on Wednesday after Federal Reserve Chairman Jerome Powell warned that keeping interest rates high for too long could hamper economic growth.
The 10-year Treasury yield was down 2 basis points at 4.275%. The 2-year Treasury note yield was little changed at 4.618%.
Yields and prices move in opposite directions. One basis point is equal to 0.01%.
Treasure Chests
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| VS1M | US 1 Month Treasury Bill | 5,313% | -0.011 |
| VS3M | US 3-month Treasury bond | 5,371% | ONCH |
| VS6M | US 6-month Treasury bond | 5,286% | -0.003 |
| VS1J | US 1-year Treasury bond | 4.999% | ONCH |
| VS2J | US 2-year Treasury Bond | 4,607% | -0.019 |
| VS10Y | US 10-year Treasury Bond | 4,269% | -0.029 |
| VS30Y | US 30-year Treasury Bond | 4,462% | -0.032 |
Powell said Tuesday that the economy and labor market remain strong despite some recent cooling.
“At the same time, given the progress made in both lowering inflation and cooling the labor market over the past two years, elevated inflation is not the only risk we face,” he said in prepared remarks on Capitol Hill. “Reducing policy too late or too little could unnecessarily weaken economic activity and employment.”
Powell added that policymakers are still committed to bringing inflation back to the 2% target as he pointed to some decline in inflation.
The central bank leader’s speech was part of a two-day appearance on Capitol Hill. He appeared before the Senate Banking Committee to present his semiannual monetary policy report to Congress and is scheduled to speak before the House Financial Services Committee on Wednesday.
Investors are also awaiting key economic data, including the June consumer price index due Thursday and the producer price index due Friday. The CPI pint is seen as a key test of the market and the outlook for rate cuts.