The Treasury slips over dominant tariffs before Powell’s testimony

(Bloomberg) – The Treasury Department has soaked up as traders expect Federal Reserve Chairman Jerome Powell to hold US interest rates later Tuesday.

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The US has scored four basis points on the long edge of the curve, trading around 4.52% of the 10-year bond rate. After two days of profit, the dollar gauge was steadily retained.

The market focus is on Powell’s testimony to the Senate Banking Committee on all clues regarding policy after the Fed showed the Fed had extended the rate last month. The Treasury Department has declined in recent sessions as President Donald Trump’s trade collection uncertainty clouds economic outlook, and Powell will question the potential impact on growth and inflation.

“Powell is likely to acknowledge not only the strength of the US economy, but also the risk of inflation,” Jeffries strategist Mohit Kumar predicted a last repeat of the Fed press conference. He said there was. “We maintain our range view.”

Money Market relaxed about 36 basis points from the US Central Bank by the end of the year. Wednesday’s inflation data could provide further evidence of the buoyancy economy after a solid employment report in January.

Bond traders also monitored the Treasury auction with a three-year memo of $58 billion starting Tuesday, with 10 and 30 years of issues over the next two days. Analysts expect yields to rise until it becomes clearer where the economy is heading.

“The new administration’s policies are so uncertain and very likely to change, so the Fed can’t really expect it to go down a clear path,” he said. said Steven Barrow.

(The price will be updated overall.)

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