10-year Treasury yield ticks higher after Bessent reassures market over Powell's position

Treasury yields moved slightly higher on Wednesday after U.S. Treasury Secretary Scott Bessent eased market jitters over instability at the top of the Federal Reserve, turning attention back to the interest rate outlook.

The benchmark 10-year Treasury yield was last trading 3 basis points higher at 4.364%, while the 2-year yield rose less than 2 basis points to 3.846%. The 30-year yield added 3 basis points to 4.934%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Bessent on Tuesday said that Fed Chair Jerome Powell does not need to resign, but reiterated calls for a review of the institution. That same day, U.S. President Donald Trump suggested he no longer plans to seek to oust Powell — telling reporters he's going to be out pretty soon anyway — calming fears of a complex legal, economic and market fallout.

Focus now turns to the Fed's July 29-30 monetary policy meeting, during which the central bank is widely expected to hold interest rates on the back of economic uncertainty, despite the president's repeated urging for a cut. U.S. inflation rose to an annual rate of 2.7% in June, up from 2.4% in May.

Powell declined to give more details on the outlook during Fed conference remarks on Tuesday, instead focusing on banking regulation.

Existing home sales data for June is due Wednesday, before weekly initial jobless claims and new home sales figures on Thursday.