The 10-year Treasury yield fell on Wednesday after U.S. President Donald Trump retracted his comments about firing Federal Reserve Chairman Jerome Powell.
As of 4:35 AM Eastern Time, the 10-year Treasury yield was down 4 basis points at 4.346%. The 2-year Treasury yield was up 3 basis points at 3.819%.
A basis point is 0.01% and yields and prices move in opposite directions.
Investors remain concerned as Trump continues to criticize Powell and recently hinted at firing him, with the president calling the central bank leader a 'big loser' on Monday, urging him to cut interest rates immediately.
White House economic adviser Kevin Hassett said on Friday that Trump and his aides are considering the possibility of firing Powell.
However, investors were relieved after Trump retracted those comments on Tuesday, saying he had 'no intention' of firing Powell. 'I would never do that,' he added.
Critics have pointed out that removing Powell would spell disaster for the U.S. market, with Senator Elizabeth Warren's warning last week, 'If Chairman Powell can be fired by the U.S. President, it would lead to a collapse of the U.S. market.'
Investor concerns were further eased after Treasury Secretary Scott Bessent suggested there may be a 'cooling off' in Trump's trade war with China. 'No one thinks the current situation is sustainable,' Bessent told a group of investors on Tuesday at a meeting hosted by JPMorgan Chase. U.S. tariffs on China remain at 145%, with Beijing retaliating with a 125% tariff on the U.S.
In terms of data, investors will be waiting for details on mortgage rates, S&P Global PMI Flash, and home sales data to seek further clues about the health of the U.S. economy.
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