U.S. Treasury yields wavered 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 3.687%, up just 1 basis point. The yield on the 2-year Treasury was flat at 4.469%. Both yields were lower earlier in the day.
Yields and prices have an inverted relationship. One basis points is equivalent to 0.01%.
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.
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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.
Meanwhile, Minneapolis Fed President Neel Kashkari told CNBC's "Squawk Box" on Tuesday that the Fed had not yet won its fight against inflation and hinted at further rate hikes.
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.
Further Fed officials are due to make remarks on Wednesday, including New York Fed President John Williams and Fed Governor Christopher Waller. No major economic data is expected.