Demand for U.S. government debt picked up as Fed’s Powell stuck to wait-and-see approach and consumer confidence fell more than expected, sending yields lower.

In conclusion, the unexpected drop in CB Consumer Confidence to 93.0 from a forecasted 99.4 and a previous 98.0 is a development of concern for the U.S. economy. The impact of this decline on consumer spending and the U.S. dollar will be closely watched in the coming months.

Treasury yields were falling Tuesday after an unexpected drop in consumer confidence. The yield on the 10-year Treasury note was down about 4 basis points at around 4.30%, according to FactSet data, at last check.