"If we were to get a low CPI next week, yields can come down around that number and we may get some weakening in the dollar," Wizman said.
The two-year Treasury yield, which reflects interest rate expectations, fell 0.2 basis points to 5.020%, while the benchmark 10-year yield was down 3.2 basis points at 4.598%.
Traders would be keeping a close watch on interest rate volatility, said Schneller, noting major market fluctuations recently.
"A primary cause for this volatility is the debate over whether the current Fed funds rate is overly high or insufficient."
In currency markets, the dollar index rose 0.019% to 105.91, with the euro up 0.04% to $1.067.
Persons:
Kim Kyung, Powell, Jerome Powell, Thierry Wizman, Wizman, Powell's, Bruno Schneller, Schneller, Tapas Strickland, Brent, Nell Mackenzie, Dhara Ranasignhe, Tomasz Janowski, Richard Chang
Organizations:
Tokyo Stock Exchange, REUTERS, Global, International Monetary Fund, Fed, FX, Dow Jones, Nasdaq, Treasury, INVICO Asset Management, Reuters Graphics U.S, NAB, New, Thomson
Locations:
Tokyo, Japan, Macquarie, New York, China, Beijing, New Zealand, London