U.S. Treasury yields were higher on Tuesday after testimony from Federal Reserve Chair Jerome Powell raised some doubt about the path toward lower rates.
The 10-year Treasury yield was last up 4 basis points at 4.537%. The 2-year Treasury yield climbed 2 basis points to 4.29%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
In prepared remarks to Congress, Powell said the central bank did not need to rush to lower rates.
"With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance," Powell said. "We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment," Powell added.
The testimony comes as traders grapple with concerns around U.S. tariffs on imported goods and their potential effect on the economy — especially on inflation.
President Donald Trump on Monday signed an executive order to add new duties on imported steel and aluminum. The European Union responded by saying it will issue retaliatory levies on U.S. products if European goods are targeted by the U.S.
Money Report
Investors are also bracing for new U.S. inflation, with the consumer price index report for January due out Wednesday. On Thursday, the January producer price index will be released.
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