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US yields advance after Fed's Powell affirms inflation message
U.S. Treasury yields rose on Wednesday after Federal Reserve Chair Jerome Powell struck a hawkish tone, as he reaffirmed the central bank's fight to bring inflation down to its 2% target. The more closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=RR deepened its inversion after Powell's speech, suggesting that investors expect further rate tightening from the Fed. The curve was last at -97.0 basis points (bps), slightly more inverted than Tuesday's -96.80. Earlier in the session, it hit a gap of -98.50 bps, the most inverted since March. ... (full story)