Short-term Treasury yields tumbled Tuesday to their lowest level in a month after Federal Reserve Chairwoman Janet Yellen defended the U.S. central bank’s decision to move cautiously on interest-rate hikes given the risky outlook. Treasury yields fell across the board, with prices rising. Yellen remained silent about any prospect of a rate hike at the next meeting on April 26-27 and underscored the risks of stagnant inflation. The market took a dovish interpretation of Yellen’s comments, with Treasury yields tumbling and stocks gaining ground. The 10-year Treasury yield, the Treasury market’s benchmark, briefly hit a one-month low, later paring the decline. It was down 4.4 basis points on the day to 1.840%. The yield on the 2-year Treasury lost 6.7 basis points to 0.820%, its lowest level in a month. The 30-year Treasury yield lost 2.2 basis points to 2.635%, its lowest level in a month.
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