Bond yields steady despite Powell subpoena; USD/JPY holds above 156.50

US Treasury yields showed minimal reaction to news of Fed Chair Powell's subpoena, with the 10-year yield rising just 2 basis points to 4.62% during Monday's session. Despite initial concerns, forex markets demonstrated resilience as USD/JPY maintained support above 156.50 after an early dip to 156.35. Trading volumes spiked briefly when the news broke but quickly normalized, suggesting traders view the investigation as having limited immediate impact on monetary policy. The subpoena relates to Powell's congressional statements about Fed building renovations rather than policy matters. EUR/USD traded in a tight 20-pip range around 1.0310, while cable remained steady near 1.2275. Market participants appear focused on upcoming economic data rather than political developments, with Wednesday's US inflation figures likely to drive more significant price action.