Treasury Action: yields jerked higher on the Powell headlines
Treasury Action: yields jerked higher on the Powell headlines, largely shrugging off the plunge in durables and widening of the advanced trade deficit. While Powell stuck to the gradualist mantra, as expected, he did say the Fed "will strike a balance between avoiding overheated economy and moving inflation to a 2% target on a sustained basis" and this had slightly hawkish undertones. The 2-year yield probed 2.238% from the 2.22% area and the 10-year yield tested 2.89% from 2.87% before easing back. In terms of the curve, yields are 1.0-2.3 basis points higher, weakest in the belly. The 5s-30s spread flattened a bp to +54 bp. Markets should bide their time now until the live testimony and Q&A in the House from 10 ET.