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NEW YORK, July 12 (Reuters) - U.S. Treasury yields fell on Wednesday after prepared remarks from Federal Reserve Chair Janet Yellen dampened growing expectations of more than one interest rate hikes for the rest of the year.
In testimony to be delivered to Congress later on Wednesday morning, Yellen said the Fed would not need to raise rates "all that much further" to reach current low estimates of the neutral fed funds rate.
She did say though that the U.S. economy is healthy enough to absorb further gradual rate increases and the slow reduction of the Fed's massive bond portfolio.
In early trading, the benchmark 10-year Treasury yield fell to a one-week low of 2.309 percent, down from Tuesday's 2.362 percent
At the front-end of the curve, U.S. two-year yields dropped to two-week lows of 1.331 percent, down from 1.379 percent late on Tuesday. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)