Bond Report: Short-term Treasury yields slide as Powell outlines downcast outlook

U.S. Treasury yields came sharply off their highs on Wednesday as market participants said Federal Reserve Chairman Jerome Powell’s prepared remarks for his semiannual testimony to Congress suggested the U.S. central bank would go forward with an interest rate-cut in July.

What are Treasurys doing?

The 10-year Treasury note yield TMUBMUSD10Y, -0.59% was mostly unchanged at 2.054%, after trading at an intraday high of 2.112%. The 2-year note rate TMUBMUSD02Y, -3.59% slipped 5.1 basis points to 1.854%, while the 30-year bond yield TMUBMUSD30Y, +0.58% was up 1.9 basis points to 2.553%.

What’s driving Treasurys?

Bond yields retreated from their highs after Powell released his prepared remarks ahead of his testimony in Congress at 10 a.m.

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