Treasury Market Erases Gains as Fed’s Powell Praises Economy

US government bond yields rose Friday after comments by Fed Chair Jerome Powell tamped down expectations the central bank could resume cutting interest rates as soon as May.

Earlier in the session, those expectations were buoyed by February employment data that, while not weak, was softer than economists’ median estimates. The resulting Treasury market rally briefly drove yields across maturities toward year-to-date lows reached earlier this week. In late trading they were higher by as much as six basis points.