In a continuation of Friday’s selloff, Treasury yields faced further pressure after Federal Reserve Chair Jerome Powell indicated a likelihood of delaying interest rate cuts until after March. The yield on the US 10-year Treasury note rose approximately five basis points in the Asian session, following a notable 14-basis-point surge on Friday, fueled by robust payroll data.
Powell emphasized a cautious approach, expressing the concern that moving too hastily might risk incomplete job recovery. The Fed Chair shared these insights during an interview on CBS’s 60 minutes, which aired on Sunday in the US. His remarks instigated a strengthening of the dollar against the majority of major currencies, with the yen experiencing a modest decline and hovering around 148 per dollar.