The yield on the benchmark 10-year Treasury was little changed at 1.65% on Tuesday, lower than a five-week high of 1.7% reached last week, amid expectations the Fed will not tight monetary policy soon. Comments from several Fed officials have helped to calm investors’ concerns over a rise in inflation and borrowing costs. Dallas Federal Reserve President Robert Kaplan said he does not expect interest rates to rise until next year and Federal Reserve Vice Chair Richard Clarida said the weaker-than-expected U.S. jobs report showed the economy had not yet reached the threshold to warrant scaling back the central bank’s massive bond purchases. FOMC minutes due on Wednesday will also be in the spotlight and traders will be looking for clues on the Fed’s next steps.
