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Place beans in the Instant Pot insert and add enough water to cover by 2" to 3". Allow to soak overnight or for at least 6 hours. After the soaking time, drain off and discard the soaking water and rinse the beans with fresh cool water, draining well. Set aside.
Add oil to the Instant Pot and press the SAUTE button. When display reads "Hot" add the onion, bell pepper, and jalapeno. Cook, stirring, for 2 to 3 minutes, or until onion and bell pepper are beginning to soften. Add garlic and cook for an additional minute then press CANCEL.
Add soaked beans, broth, tomato sauce, chili powder, yellow mustard, cumin, oregano, black pepper, and the bay leaves. Stir well to combine. Lock the lid in place, and turn the vent at the top to the SEALED position. Set Instant Pot to MANUAL and cook for 25 minutes.
When time is up, allow the steam pressure to naturally release which should take 15 to 20 minutes. After the natural release, move vent on top to the RELEASE position to allow any remaining pressure to release before removing the lid. Taste and season with salt as desired.