U.S. Treasury yields held steady on Wednesday as investors monitored the Israel-Iran ceasefire and awaited Federal Reserve Chairman Jerome Powell’s second day of testimony before Congress.
At 3:50 a.m. ET, the 10-year Treasury yield was down over one basis point to 4.28%, while the 2-year yield was up less than a basis point at 3.78%. The 30-year yield was little changed at 4.818%.
One basis point equals 0.01% and yields move inversely to prices.
U.S. President Donald Trump announced a ceasefire between Israel and Iran on Tuesday, but the two countries both violated the ceasefire initially by firing non-lethal rockets. The ceasefire has held since, but investors will keep an eye on the situation to keep track of any uncertainty.
Investors will also await Powell’s second testimony before Congress, after he delivered remarks to the House Financial Services Committee on Tuesday. The central bank leader reiterated that policymakers will continue to hold rates as they wait and see the impact of tariffs on prices.
“Policy changes continue to evolve, and their effects on the economy remain uncertain,” Powell said. “The effects of tariffs will depend, among other things, on their ultimate level.”
Trump has continued to fire criticism at Powell for his wait-and-see approach and posted Tuesday, on the Truth Social platform, that he hopes “Congress really works this very dumb, hardheaded person, over.”
Powell will speak before the Senate Banking Committee on Wednesday, which investors will watch closely for further clues about future monetary policy.
On the data front, new home sales for May is due in the morning, with the gross domestic product growth rate out on Thursday, and the personal consumption expenditures index — the Fed’s preferred inflation gauge — to be released on Friday.
