(Dow Jones)–The 10-year Treasury yield falls for the second consecutive session after Monday’s 16-year high. Sentiment in bond markets have been driven by expectations that Chair Powell could signal in Jackson Hole that rates aren’t likely to fall back to near-zero levels for a long time. Monday’s high may have been an overshoot, says AmeriVet’s Gregory Faranello. The 4.34% reached by the 10-year “was a big level…and conditions very oversold,” he says. Today, the 10-year loses 0.130 percentage point, its largest one-day fall since May, to 4.197% and the two-year declines 0.085 pp to 4.950%. Thursday, weekly jobless claims are expected at 240,000, little changed from the previous period.

By: Paulo Trevisani