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UST yields fell modestly as Powell struck a softer tone, highlighting that labor markets had weakened and signaling that the Fed may soon halt balance sheet runoff, reducing liquidity pressures. His comments reinforced belief in a near-term cut, pushing down long yields with 10Y dipping toward ~4.02% (−2-3bp) while 2Y yields eased slightly, steepening the curve. Nevertheless, the decline was capped: concerns over heavy issuance, sticky inflation, and elevated term premium prevented deeper retreat. Markets now await the release of the Fed minutes and incoming macro prints to validate whether the dovish repricing will persist or whether hawkish forces reassert control.