The 10-year U.S. Treasury yield retreated on Wednesday, taking a pause in its rapid run that has unnerved financial markets.
The yield on the benchmark 10-year Treasury note fell by about 4 basis points to 1.496%. The yield on the 30-year Treasury bond shed more than 2 basis points to 2.04%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The 10-year yield topped 1.56% on Tuesday, hitting its highest point since June, as investors bet the Federal Reserve would soon start to remove some stimulus as inflation persists. The turnaround in yields has been speedy, with the yield as low as 1.29% just last week. As rates spiked on Tuesday, equity markets fell with the Nasdaq Composite posting its worst day since March.
Federal Reserve Chairman Jerome Powell said Tuesday to the Senate Banking Committee that rising prices could linger for longer than expected. Powell is due to speak again on Wednesday, at 11:45 a.m. ET, on a policy panel discussion at the European Central Bank Forum.
Rising energy prices in Europe is also likely adding to investor concerns over inflationary pressures.
In terms of data due out on Wednesday, the number of home sales pending in August is set to be released at 10 a.m. ET.
An auction is scheduled to be held on Wednesday for $30 billion worth of 119-day bills.
