Treasury Action: yields are little changed following Chairman Powell's interview
Treasury Action: yields are little changed following Chairman Powell's interview, while stocks shed its gains. Bonds seemed to take his comments about a "significantly smaller" balance sheet in stride, while still suffering a bit from a rather tepid 30-year auction. The 2-year is at 2.555%, with the 10-year at 2.715%. Meanwhile, stocks are lower, but have pared losses. A confluence of events may have impacted stocks, eroding the afternoon gains. Along with Powell's comments on the balance sheet, analysts didn't see it as a new view, the President announced he would not be going to Davos due to the government shutdown. Additionally, the Treasury's bond auction was on the soggy side. The markets are still narrowing inside the day's ranges.