With Treasury yields out to the 10-year trading well above 4% and longer maturities sitting above 5%, investors are getting better compensated for holding bonds.

Unlike 2007, however, the Federal Reserve's benchmark is 150 basis points lower currently, suggesting investors are demanding even more compensation than at the start of the subprime debt woes.

Yields on Tuesday were higher by roughly two to four basis points across maturities, with the 10-year yield rising to touch its highest since late May at 4.64%.

The Labor Department report that US consumer prices in June saw the first monthly drop since 2020 was met with relief in financial markets.

The Supreme Court may have allowed the central bank to chart its own course on bank oversight for now, but discrepancies between two recent rulings set the stage for challenges.

The central bank failed to prevent critical economic information from falling into the hands of "foreign adversaries," according to a report from its inspector general.

Reports on US consumer and producer prices, showed more deceleration that economists had estimated. As a result, the outlook for Fed policy shifted from two quarter-point hikes by mid-2027 to include the possibility of just one hike.

The average contract rate on a 30-year fixed mortgage climbed 7 basis points to 6.65% in the week ending July 10. Meanwhile, the group's index of mortgage purchase applications fell 7.3%.

Kevin Warsh made his first appearance before Congress as Fed chairman Tuesday and noted that policymakers have no tolerance for high inflation, reiterating a vow to tame price growth.

The Federal Reserve governor said the central bank should consider near-term rate hikes if core-measures of inflation continue to climb.

The report described growth as solid and productivity as strong, while finding little sign of risk in the banking system.

Signs of "overheating" in the U.S. economy mean interest-rate hikes are more likely there than in Europe, dimming the appeal of Treasuries.

Lisa Cook can keep her seat on the Federal Reserve Board thanks to the Supreme Court's procedural concerns. Deeper questions about the central bank might not come for years — if at all.

The Bureau of Economic Analysis' personal consumption expenditures inflation report for May showed that inflation had risen 4.1%, meeting elevated expectations and casting further doubt on the prospects of near-term interest rate cuts from the Federal Reserve.

The Treasury chief also predicted that the US economy will accelerate "on a non-inflationary basis for the rest of the year."

Falling oil prices also ease pressure on the Fed to raise interest rates to fight inflation. Swap contracts priced in slightly lower chances of more than one hike in the next year.

The Federal Reserve's new chair wants to change the way the central bank communicates with markets and the public. What those changes ultimately amount to could represent a major shift in an agency that has made transparency a guiding light for decades.

Greenspan's 18 years as Fed chief, from 1987 until his retirement at the start of 2006, were marked by a stock market boom and low unemployment.

He also noted that Fed policy moves rarely occur as one-off actions, with rate changes more often coming in a series of two or three.

The new Fed chair takes his seat for the first time but may find it was easier to be an outside critic than inside leader.