Dovish comments by Fed's Kaplan fail to move treasury yields

• Dallas Fed's Kaplan talks dovish, says a rate cut could happen in September.
• Treasury yields, however, remain resilient, with the 10-year yield adding more than two basis points.

Dallas Federal Reserve (Fed) President Robert Kaplan was out on the wires earlier today, stating there is potential for an interest rate cut in September.

So far, however, the US Treasury yields have ignored Kaplan's dovish comments.  

As of writing, the two-year yield, which closely tracks short-term interest rate expectations, is trading largely unchanged on the day at 1.63 percent. The yield hit a low of 1.60 percent at 23:50 UTC yesterday.

Meanwhile, the 10-year yield has jumped from 1.618% to 1.634% in the last few minutes.

The spread between the 10 and two-year treasury yields is holding just above zero. The curve had inverted (turned negative) during Wednesday's US trading hours.

Looking forward, the yields may drop if the Fed President Powell uses his speech at the Jackson Hole Symposium to set the stage for aggressive rate cuts before the year-end.