March 7, 2023: On Monday, U.S. Treasury yields steadied as investors looked ahead to key data and comments from Federal Reserve Chairman Jerome Powell related this week.
The yield on the 10-year Treasury in the previously traded flat at 3.967%. It crossed the 4% mark on several days in the previous week. The 2-year Treasury yield added more than two basis points to 4.888%.
Investors are over the outlook for monetary policy and the condition of the U.S. economy, which includes inflationary developments, ahead of a series of data releases slated for the week. That includes JOLT’s job openings data on Tuesday and February’s non-farm payroll and unemployment report on Friday.
The labour market is one of the critical areas of the economy that the Fed has been trying to cool through policy measures such as interest rate hikes.
The new figures could provide hints regarding the impact of the central bank’s monetary policy.
Before then, Fed Chairman Powell is expected to speak before Congress on Tuesday and Wednesday about the central bank’s expectations about inflation and what this means for its policy approach.
Various Fed administrators have recently indicated that the battle with inflation is not yet over. Further interest speed hikes are necessary to cool pressures from rising prices.
The central bank’s coming rate decision is anticipated after its conference on March 21 and 22.