US Treasury yields moved higher on Wednesday but pulled back from earlier highs after mixed economic data and comments from Federal Reserve Chair Kevin Warsh. The 10-year yield rose about 4.3 basis points to 4.465% after briefly touching 4.501%, its highest in a week.
Warsh said inflation risks and expectations have eased, while reaffirming the Fed’s commitment to its 2% target and leaving open the possibility of rate action at the next meeting. ADP data showed weaker-than-expected private payroll gains, while ISM manufacturing slowed but remained in expansion.
Markets now await the official US payrolls report, with rate-hike expectations for July and September shifting lower, while inflation breakevens held steady near recent levels.