U.S. Treasury yields struggled to find a direction on Tuesday after Fed Chair Jerome Powell indicated that the central bank was not moving toward changing its dovish policy stance.
The yield on the benchmark 10-year Treasury note fell slightly 1.36% at 12:30 p.m. ET, while the yield on the 30-year Treasury bond climbed to 2.20%. Yields move inversely to prices.
Powell began his hearing with Senators at 10 a.m. ET. While the semiannual testimonies are normally nonevents for the market, Powell’s speeches this week will likely be closely watched for how he views the recent run-up in bond yields and for any comments on inflation.
The Fed chief said in prepared testimony that “”The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.” Yields traded higher briefly after the remarks were released before settling back near the flat line.
Additionally, December data for the S&P CoreLogic Case-Schiller home price index showed the biggest price gain since 2013.
Auctions will be held Tuesday for $34 billion of 52-week bills, $30 billion of 42-day bills and $60 billion of 2-year notes.
— CNBC’s Jeff Cox contributed to this report.
