Yields fall back into the familiar range over the past two months or so


10-year Treasury yields are down by 4 bps to 0.687% on the day, continuing its retreat since the start of the week after the breakout from the end of last week fades.

Amid talk of the Fed potentially putting a cap on yields, that provided a floor for Treasuries as gains extend for a fourth day back into the familiar range since April.

Although Powell didn't give any 'hard commitment' on yield curve control, the fact that they reiterated that accommodative policy will stay the course for a long time (the dot plots reaffirm that) is enough to keep the market in-check for now.

Not to mention the now infamous line of "we're not even thinking about raising rates".

In terms of short-term yields, 2-year yields are now at 0.167% - a distance away from the 0.233% high after the blowout US jobs report last week.

As long as that isn't anywhere near the upper limit of the Fed funds rate at 0.25%, that should keep the Fed appeased for the time being.