Bessent and Warsh Set to Steer Treasury Yields

Treasury yields took a breather on Monday as investors awaited key remarks from US Treasury Secretary Scott Bessent and Federal Reserve Chairman Kevin Warsh. The market is looking to their comments for guidance on where yields will go next, with the potential for significant moves depending on their words.

Last week was marked by choppy trading, particularly in the long-end of the curve, where 30-year borrowing costs reached a near two-decade high before the US Treasury stepped in with buybacks. The intervention helped calm markets and sparked a moderate recovery.

The 10-year yield is now three basis points lower at 4.71%, while the 30-year fell by a similar margin to 5.24%. These declines come after a tumultuous week that saw yields fluctuate wildly in response to market sentiment and economic data.