The
10-year Treasury yield
moved lower on Tuesday as investors geared up for the Federal Reserve’s decision next week.
The benchmark 10-year Treasury yield was more than 3 basis points lower at 4.338%. The
2-year yield
dropped more than 2 basis points to 3.827%. The
30-year yield
also fell more than 3 basis points to 4.899%.
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One basis point is equal to 0.01%, and yields and prices move in opposite directions.
The Fed is set to meet July 29-30, when it will make a decision on whether to cut interest rates. Fed funds futures traders are pricing in more than 95% odds that the central bank will leave its current target rate range unchanged at 4.25%-4.5%, per the
CME FedWatch tool
.
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This comes as President Donald Trump has been calling for the central bank leader’s removal for months now, and the conflict remains in focus for investors.
On Tuesday, U.S. Treasury Secretary Scott Bessent said that Fed Chair Jerome Powell
does not need to resign
. However, Bessent reiterated comments from earlier in the week that the Fed as an institution
needs to be reviewed
.
“What we need to do is examine the entire Federal Reserve institution and whether they have been successful,” Bessent said in an interview on CNBC’s ”
Squawk Box
” on Monday. “Has the organization succeeded in its mission? If this were the [Federal Aviation Administration] and we were having this many mistakes, we would go back and look at why has this happened.”
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Bessent also questioned the Fed’s decision not to lower interest rates this year, given that the U.S. has “seen very little, if any, inflation.”
″
I think this idea of them not being able to break out of a certain mindset,” Bessent said, referring to Fed officials. “All these Ph.D.s over there, I don’t know what they do.”
It’s quiet on the economic data front this week, but investors will keep an eye out for existing home sales data for June on Wednesday, as well as weekly initial jobless claims and new home sales in June on Thursday. They will also await data on durable goods orders for the previous month on Friday.
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Global bond yields come under pressure
