On Wednesday, U.S. Treasury yields held steady as investors awaited key economic data and comments from Federal Reserve Chairman Jerome Powell. At 6:47 a.m. ET, the yield on the 10-year Treasury was down slightly at 4.429%. The 2-year Treasury yield had risen by 2 basis points to 4.76%.
Federal Reserve Chairman Jerome Powell stated on Tuesday that progress was being made on inflation, indicating that recent readings suggest a return to a disinflationary path. However, he emphasized that the Fed wants to see more evidence before considering rate cuts. The minutes from the Fed’s latest meeting were expected on Wednesday, providing insight into policymakers’ thoughts on inflation and monetary policy.
Additional economic data to be released this week includes import and export figures, insights into the services sector, and ADP’s private payrolls report. Investors are also looking ahead to the June jobs report on Friday, which will include nonfarm payrolls and the unemployment rate for the month. These figures could indicate the direction of the economy and potential changes in interest rates.
Markets will close early on Wednesday and remain closed on Thursday for the Fourth of July holiday. The information released this week will shape investors’ expectations for future monetary policy decisions based on economic conditions and inflation trends.
