US Treasury yields increased on Tuesday after Federal Reserve Chair Jerome Powell raised concerns about lowering interest rates. The 10-year yield rose 4 basis points to 4.537%, while the 2-year yield climbed 2 basis points to 4.29%.
Powell stated that the central bank doesn’t need to rush to lower rates, citing a strong economy and reduced policy restrictions. However, he warned that reducing restraint too quickly could hinder inflation progress, while too slow or little restraint could weaken economic activity.
The rise in yields comes amid trade tensions and concerns over US tariffs on imported goods. President Donald Trump signed an executive order adding new duties on steel and aluminum imports from Europe, leading the EU to threaten retaliatory levies.
Investors also await data on US inflation, including the consumer price index report for January, set to be released Wednesday, and the producer price index on Thursday.
Source: https://www.cnbc.com/2025/02/11/us-treasury-yields-investors-await-powells-testimony-to-congress.html