Treasury futures fluctuated as 10-Year yields tested new highs.
Treasury futures held near unchanged following a volatile session that saw 10-Year Treasury yields rally 12 bps from yesterday's lows to test 4.5% before pulling back to 4.47. The rapid intraday movement followed the Fed Chair's remarks, which reinforced the central bank's 2% inflation mandate while notably limiting forward guidance. Despite the yield fluctuations, the CVOL index indicated that market volatility actually moved lower following the comments. Traders are currently pricing in one full rate hike for 2026. Looking ahead, the market is preparing for a compressed data schedule, with both initial jobless claims and nonfarm payrolls set for release on Thursday ahead of Friday's July 4 market closure.
Treasury futures held near unchanged following a volatile session that saw 10-Year Treasury yields rally 12 bps from yesterday's lows to test 4.5% before pulling back to 4.47.
The rapid intraday movement followed the Fed Chair's remarks, which reinforced the central bank's 2% inflation mandate while notably limiting forward guidance.
Despite the yield fluctuations, the CVOL index indicated that market volatility actually moved lower following the comments.
Traders are currently pricing in one full rate hike for 2026.
Looking ahead, the market is preparing for a compressed data schedule, with both initial jobless claims and nonfarm payrolls set for release on Thursday ahead of Friday's July 4 market closure.