U.S. Treasury yields edge up slightly, Treasury Secretary Yellen says Powell has no reason to step down as Fed chair.

U.S. Treasury yields rose, reversing previous declines, Treasury Secretary Scott Benette said he believes there is no reason for Jerome Powell to step down as Chairman of the Federal Reserve. Yields on U.S. Treasuries of various maturities fell by about 3 basis points. The two-year Treasury yield, which is particularly sensitive to changes in monetary policy, fell to 3.83%, its lowest level since early July. Powell's future has become a key issue for bond investors, as the Fed chairman has faced criticism from Trump for his wait-and-see approach on the impact of tariffs on inflation. However, Benette said in a speech on Fox Business on Tuesday that if Powell intends to do so, he should continue to serve as Chairman until the end of his term in May of next year. "Benette's support for Powell completing his term may at least provide some relief for the long-dated bond market," said Zachary Griffiths, investment grade and macroeconomic strategist at CreditSights.