U.S. Treasury yields were up on Tuesday as investors anticipate Federal Reserve Chair Jerome Powell’s testimony before Congress and digest the latest tariff orders.
At 3:50 a.m. ET, the 10-year Treasury yield was up more than one basis point to 4.5130%, and the 2-year Treasury yield rose more than one basis point to 4.2812%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Treasurys
Investors are awaiting Powell’s testimony before Congress which will take place on Tuesday and Wednesday and will begin at 10 a.m. on both days. Investors will watch closely as Powell’s testimony will offer fresh insights into the health of the U.S. economy and future monetary policy decisions.
Investors are expecting a packed week of economic data. The consumer price index reading for January, which will be released on Wednesday, will show whether the Fed is getting closer to its goal of reducing U.S. inflation to an annual rate of 2%. The producer price index — which measures wholesale prices — for January is due on Thursday.
The initial weekly jobless claims data is also out on Thursday, and retail sales data will be released on Friday.
Meanwhile, investors are watching as U.S. President Donald Trump signed his latest tariff order on Monday evening to impose a 25% duty on steel and aluminum imports. The order will go into effect on March 4.
Sam Stovall, chief investment strategist at CFRA Research, said the impact of tariffs will become clear only with future inflation data.
“If the tariffs go into effect for a while, disrupt supply chains, and result in increased inflation, then I would say investors are going to worry,” Stovall said.
“But right now — especially with CPI numbers on Wednesday and PPI on Thursday expected to show year-on-year declines in both the headline and the core readings — that would end up providing a support underneath the market and allow it to continue to creep higher,” Stovall added.