Economic reports and Jerome Powell's testimony in the US Congress could lift US government bonds from a narrow trading range. The yield on the 10-year US government bond has risen since mid-June, as the market watches data on slowing inflation and economic growth.
The bond yield reached 4.33% last Friday. Although US economic data still raises doubts about a rate cut this year, next week's US employment data and Powell's testimony could change the market outlook. An increase in the unemployment rate could push bond yields down. However, the latest report shows that inflation and growth remain stable, dampening bond market volatility. The market is also predicted to be negatively impacted by low liquidity during the week due to the US independence holiday on July 4.
