US Treasury yields mixed amid Powell probe, inflation data
U.S. Treasury yields were mixed on Monday as investors digested news of a criminal investigation involving Federal Reserve Chair Jerome Powell and turned their attention to key inflation data scheduled for later in the week.
At 3:40 a.m. ET, the benchmark 10-year Treasury yield was up more than 1 basis point at 4.187%, News.Az reports, citing CNBC.
The 2-year Treasury note yield slipped by 2 basis points to 3.517%, while the 30-year bond yield rose 3 basis points to 4.853%. One basis point equals 0.01%, and yields move inversely to prices.
On Sunday evening, Powell disclosed that the U.S. Department of Justice had launched a criminal investigation into him, centered on a $2.5 billion renovation project at the Federal Reserve’s headquarters in Washington, D.C.
In a video statement posted on the Federal Reserve’s X account, Powell said the investigation stemmed from President Donald Trump’s frustration with the Fed’s refusal to cut interest rates in line with the president’s demands.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said.
The Federal Reserve lowered interest rates three times in 2025 but is widely expected to pause further cuts when policymakers meet at the end of January.
Powell added that the issue goes beyond his own position, saying, “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation.”
Looking ahead, investors are focused on upcoming U.S. economic data, with the consumer price index due on Tuesday and the producer price index set for release on Wednesday. These reports are expected to offer critical insight into inflation trends and the broader health of the U.S. economy.
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