Treasury yields edge lower ahead of Powell’s speech this morning, with markets betting the end of the hiking cycle has come, although the Fed is yet to clearly state it. “This is going to be a continued battle between markets and this Fed,” AmeriVet’s Gregory Faranello says in a note. “Can the Fed keep financial conditions tight enough by just staying on hold?” he asks, adding that “if they need to go even higher, markets are not going to like it.” The 10-year yield is trading at 4.564% and the two-year at 4.911%.

By: Paulo Trevisani