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All ears are on Fed Chairman Janet Yellen these 2 days as she gave her testimony yesterday expressing concern over inflation and is due to speak again tonight on this as well as the market-sensitive Fed balance sheet and interest rate position. Yellen’s statement diverted attention from news of Donald Trump Jr.’s controversial meeting with a Russian lawyer, though this latest political saga may form an unwelcome distraction for the Fed seeking to unwind a decade of monetary stimulus. Treasuries rallied with 10-year yields slid below 2.32 percent as Yellen acknowledged that inflation remains persistently below target, alluding to the Fed holding off but indicated that she was cautious about the risks of inflation and that the economy remains strong enough for the Fed to continue gradually tightening policy. The markets await the release of the inflation indicators – PPI and CPI numbers – later this week.