On Wednesday, U.S. Treasury yields remained stable as investors anticipated important data and reflected on the comments made by Federal Reserve Chairman Jerome Powell. The yield on the 10-year Treasury was slightly up at 4.4375%, while the 2-year Treasury yield had increased by more than one basis point to 4.7538%.
Powell mentioned progress in addressing inflation concerns, noting that recent readings indicated a move towards disinflation. However, he emphasized that the Fed needed more assurance before considering rate cuts. Powell, along with other policymakers, expressed a desire for confidence in inflation trends before making policy adjustments.
Investors are eagerly awaiting the release of minutes from the latest Fed meeting for insights into policymakers’ views on inflation and monetary policy. Additionally, data on imports, exports, the services sector, and ADP’s private payrolls report are also expected. On Friday, the June jobs report, including nonfarm payrolls and the unemployment rate, will provide further indications of economic trends and potential impacts on interest rates.
Financial markets will close early on Wednesday and will remain closed on Thursday in observance of the Fourth of July holiday.