Treasury yields ebb lower as Powell's congressional testimony remains in focus

• Fed Chair Jerome Powell and Treasury Secretary Janet Yellen will speak about the economic response to the coronavirus in front of the U.S. Senate's Committee on Banking, Housing, and Urban Affairs, at 10 a.m. ET on Wednesday.
• Key manufacturing data for the U.S. is due out Wednesday, with the number of durable goods orders made in February, expected at 8:30 a.m. ET.
• The Markit manufacturing and services purchasing managers' indexes for March are then set to come out 9:45 a.m. ET.

U.S. Treasury yields continued to ease from recent highs early on Wednesday, with Federal Reserve Chairman Jerome Powell set to make a second appearance in Congress later in the day.

The yield on the benchmark 10-year Treasury note fell to 1.623% at 4:30 a.m. ET. The yield on the 30-year Treasury bond dipped to 2.317%. Yields move inversely to prices.

Treasurys

Powell and Treasury Secretary Janet Yellen will speak about the economic response to the coronavirus in front of the U.S. Senate's Committee on Banking, Housing, and Urban Affairs, at 10 a.m. ET on Wednesday.

This followed their first joint appearance on Tuesday in front of the U.S. House Committee on Financial Services, in which the pair acknowledged the richly valued asset prices in the markets, but said that they are not concerned about financial stability.

"I'd say that while asset valuations are elevated by historical metrics, there's also belief that with vaccinations proceeding at a rapid pace, that the economy will be able to get back on track," Yellen said during the testimony. 

Meanwhile, Dallas Fed President Robert Kaplan told CNBC on Tuesday that he will likely favor an interest rate increase before the end of 2022. However, a dot plot of the rate expectations of individual members on the Federal Open Market Committee, revealed after last week's meeting, showed just three other officials out of 18 agreed with Kaplan's position. The plot overall still indicated no hikes through 2023.

Key manufacturing data for the U.S. is due out Wednesday, with the number of durable goods orders made in February, expected at 8:30 a.m. ET. The Markit manufacturing and services purchasing managers' indexes for March are then set to come out 9:45 a.m. ET.

Auctions will be held Wednesday for $35 billion of 119-day bills, $61 billion of 5-year notes and $26 billion of 1-year 10-month floating-rate notes.

— CNBC's Maggie Fitzgerald and Jeff Cox contributed to this report.

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