U.S. Treasury yields pulled back Wednesday as investors assessed the monetary policy outlook after Federal Reserve Chairman Jerome Powell's latest comments.
The 10-year Treasury yield was trading at 3.623%, down by 5 basis points. The yield on the 2-year Treasury was also down by 4 basis points at 4.431%.
Yields and prices have an inverted relationship. One basis points is equivalent to 0.01%.
Treasurys
Investors digested Tuesday's comments from Powell, who indicated that inflation was easing, but it would likely take a long time to come down significantly. Speaking at The Economic Club of Washington, D.C., he also said that the Fed may hike interest rates further, depending on economic data.
That echoed the tone Powell struck last week at the conclusion of the Fed's latest meeting, which saw a 25 basis point interest rate hike.
The central bank has been implementing monetary policy measures including rate hikes in an effort to slow the economy and cool inflation. Concerns about elevated rates leading the U.S. economy into a recession have spread among investors.
Investors also continued watching corporate earnings for signs of a weakening consumer or broader economy.