U.S. Treasury yields were little changed on Wednesday as investors considered the state of the economy and outlook for interest rates.
The yield on the 10-year Treasury slipped by less than 1 basis point at 4.16%. The yield on the 2-year Treasury was last at 4.44%, near flat.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors considered economic data and comments from Federal Reserve officials slated for the week after central bank Chair Jerome Powell earlier this week said interest rates would likely be cut before inflation reaches 2%.
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Waiting until the Fed's 2% target rate has been reached would likely be too late and could see inflation fall below this level, he said. But Powell also noted the Fed was still looking for greater confidence that inflation is indeed on its way back to the central bank's target.
The latest reason for optimism came Wednesday, when Fed Governor Christopher Waller said cuts were in the near future barring any big surprises on the inflation or employment fronts.
"I believe current data are consistent with achieving a soft landing, and I will be looking for data over the next couple months to buttress this view," Waller said in remarks for a program at the Kansas City Fed. "So, while I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted."
Money Report
One more set of inflation data — the personal consumption expenditures price index — is due before the Fed meets at the end of the month, when investors are hoping to get hints that rate cuts could begin in the coming months.
Fed funds futures trading implies a high likelihood the Federal Reserve will lower rates in September, according to the CME FedWatch tool.
— CNBC's Jeff Cox contributed to this report.
