U.S. Treasury yields dipped slightly on Tuesday as Fed Chair Jerome Powell detailed his plan to fight inflation if confirmed for a second term leading the central bank.
The yield on the benchmark 10-year Treasury note shed 2 basis points to 1.76% at 11:35 a.m. ET. The 2-year yield was little changed near 0.905%. The yield on the 30-year Treasury bond fell by 2 basis points to 2.088%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The long-dated Treasury yields cooled on Monday, after moving rapidly higher during the first week of the year. The 10-year Treasury yield ended 2021 near 1.51%.
Powell testified before the Senate Committee on Banking, Housing and Urban Affairs on Tuesday, saying that the Fed intended to normalize monetary policy in 2022.
“We’re really just going to be moving over the course of this year to a policy that is closer to normal. But it’s a long road to normal from where we are,” Powell said.
In addition, Kansas City Fed President Esther George also signaled a willingness to tighten policy at the Fed’s March meeting.
December inflation readings will be the main economic data focus for investors this week, with the consumer price index set to be released on Wednesday and the producer price index slated for Thursday.
An auction is scheduled to be held for $52 billion of 3-year notes on Tuesday.
— CNBC’s Tanaya Macheel contributed to this market report.
