Benchmark yield plunges on Fed’s dovish tone

The benchmark 10-year U.S. Treasury yield was seen subdued on Tuesday. This came after Federal Reserve Chairman Jerome Powell said that the economy of the United States still needed support from the central bank.

The 10-year note dropped 1.4 basis point, hitting a 1.3551% record during its afternoon trading. Prior to that, it touched a peak of 1.389% during its early session. However, it then plunged after Powell testified at a U.S. Senate Banking Committee hearing in Washington.

The central bank decided to keep its ultra-low interest rate, with plans to continue its bond-buying scheme until it reaches its objective. Analysts, on the other hand, said that the market’s movement highlighted status quo expectations, with Powell still dovish even after inflation concerns started to press.