Treasury yields rise ahead of Fed Chair Powell’s testimony on the economy

U.S. Treasury yields rose on Tuesday morning, ahead of Federal Reserve Chairman Jerome Powell’s first of two speeches in Congress this week, as part of a mandated semiannual testimony on the economy.

The yield on the benchmark 10-year Treasury note advanced to 1.376% at 4 a.m. ET, while the yield on the 30-year Treasury bond climbed to 2.198%. Yields move inversely to prices.

Powell is expected to speak at 10 a.m. ET on Tuesday. While the semiannual testimonies are normally nonevents for the market, Powell’s speeches this week will likely be closely watched for how he views the recent run-up in bond yields and for any comments on inflation.

Data for December from the S&P CoreLogic Case-Schiller home price index, which tracks residential property prices in 20 major U.S. cities, is due out at 9 a.m. ET.

Auctions will be held Tuesday for $34 billion of 52-week bills, $30 billion of 42-day bills and $60 billion of 2-year notes.