NEW YORK- US Treasury prices fell on Tuesday, pushing yields higher, pressured by comments from Federal Reserve Chair Jerome Powell saying the Fed is not in a rush to cut interest rates as well as persistent worries about tariffs after steep duties imposed on all steel and aluminum imports.
In afternoon trading, the US benchmark 10-year yield rose 4.2 bps to 4.537 percent rising for a fourth-straight session. US 30-year yields also increased, up 4.2 bps at 4.753 percent
On the short end of the curve, the two-year yield, which tracks policy moves by the Fed, gained 2.2 bps to 4.289 percent after earlier hitting its highest in three weeks of 4.298 percent.
The tariff backdrop could push the Fed to hold interest rates unchanged for a longer period than expected, or even hike them, some analysts said.
The US rate futures market on Tuesday priced in about 36 basis points (bps) of easing this year, or one rate cut of 25 bps, with the first rate reduction now seen at the July or September Fed policy meeting. Futures traders had priced in for many weeks more than an even chance of easing in June.
