Upcoming economic reports and Congressional testimony from Federal Reserve Chairman Jerome Powell have the potential to shake U.S. government bonds out of their narrow trading range. Yields on 10-year Treasuries have stayed between 4.20% and 4.35% as the market reacts to slowing inflation and signs of economic cooling. The market remains uncertain about the extent of Fed rate cuts moving forward, with next week's employment and inflation data, along with Powell's testimony, likely to impact Treasury yields. Despite recent data indicating slowing inflation and stable growth, some investors believe yields could fall further if more rate cuts are implemented. However, others argue that inflation remains a stubborn factor, limiting the potential for significant yield declines. Market reactions to upcoming data and Powell's testimony could be amplified by low liquidity during the July 4th holiday week, making it a pivotal moment for bond traders.