Treasury Market Calm Ahead of Powell's Speech Amid Low Volatility

Treasury market volatility has fallen to multi-year lows, creating a stable environment as traders await Federal Reserve Chair Jerome Powell's press conference. His remarks could shift sentiment, with a hawkish tone potentially pushing 10-year yields above 4%. Some Fed officials support rate cuts due to weakening labor momentum, while others favor holding rates steady amid persistent core inflation. As of Wednesday in Asia, the 10-year yield was near 3.98% and the two-year yield around 3.49%.