US returns ease as markets consider the timing of the rate, the demand for the auction auction, | Einsmark news

(Write throughout auction results, analysts quote, context) by Tatiana Bautzer New York, June 25 (Reuters) – Yields on benchmarks of the US Treasury were slightly lower on Wednesday afternoon as oil prices rose and markets assessed the timing of possible interest rate cuts. Yields on the longer-term treasure chest rose during the day, but dropped in the afternoon trading. The return of the US Treasury note of ten years was 0.6 base point to 4.287%, and the yields of 30 years were flat at 4.831%. The two -year return, which typically moves in step with interest rate expectations, was 1.1 basis point at 3.773%. Oil prices rose on Wednesday after sharp declines during the last days. Investors considered a strong demand for US energy and assessed the stability of the ceasefire in the Middle East. Federal Reserve chairman Jerome Powell told a US Senate panel on Wednesday that tariff plans could only cause a one -time rise in prices, but the risk of causing more persistent inflation is large enough for the central bank to be careful about considering further rate cuts. Debates about the timing for the first rate reduction of the year has been increasing since Fed’s officials appointed by President Donald Trump, such as Michelle Bowman and Christopher Waller, discussed the chance of rate cuts, which began as soon as July. “Our basic scenario is still the first rate of the year in September, but we follow the discussions among Fed officials before the July meeting and the Jackson Hole conference,” said Ed Acton, Citigroup’s US tariff strategist. Several Fed officials are expected to speak in public on Thursday, such as the Federal Reserve Bank of Richmond President Thomas Barkin, Fed President of Cleveland, Beth Hammack, board -Governor Michael Barr and Minneapolis’s Fed President Neel Kashkari. CME’s Fedwatch instrument shows that markets project a 22% chance of the first rate cut at the July meeting and 90% chance of cuts in September. Markets will be looking for signs of delay that can go wrong the chance of urgent timing. The Department of Trade will announce the final estimate for the gross domestic product in the first quarter on Thursday. The Department of Labor will also release initial unemployment claims. Gennadiy Goldberg, head of the US tariff strategy at TD Securities in New York, said the most important data on Friday, with the prize for personal consumption expenses for May. “Markets do not have much momentum in any direction now, but data can change that,” he added. Trump said at a NATO meeting in the Netherlands on Wednesday morning that he is already considering candidates to replace Powell next year when his term ends. The US Treasury sold $ 70 billion in 5-year-not-notes, with a clumsy demand and a 2.36 bid-to-cover ratio. Yields on the 5-year notes were flat in the afternoon trading, 3.842%. Part of the US Treasury yield curve that measures the gap between yields on two and 10-year treasury notes, seen as an indication of economic expectations, was at a positive 51.4 basis points. The getaway rate at five-year US Treasury Inflation Protected Securities (Tips) was last at 2.307% after closing at 2.3% on June 24. The US dollar 5 years of forward inflation-linked exchange, seen by some as a better degree of inflation expectations due to possible distortions caused by the quantitative relief of the Fed, were last 2.471%. (Reporting by Tatiana Bautzer, Editing by Nick Zieminski and Franklin Paul)