U.S. Treasury yields fell on Friday as investors considered the latest economic data and comments from Federal Reserve officials, and what that might mean for monetary policy.
At 4:20 am ET, the yield on the 10-year Treasury was down five basis points to 4.5878%. The 2-year Treasury yield was at 4.9622% after falling more than two basis points.
Yields and prices move in opposite directions. One basis point is equal to 0.01%.
Treasuries
| ticker | Company | Yield | change |
|---|---|---|---|
| US1M | US 1 month Treasury | 5.381% | +0.01 |
| US3M | US 3-month Treasury | 5.48% | +0.084 |
| US6M | US 6-month Treasury | 5.393% | +0.017 |
| US1Y | US 1 Year Treasury | 5.208% | +0.023 |
| US2Y | US 2 Year Treasury | 4.956% | -0.034 |
| US10Y | US 10-year Treasury | 4.584% | -0.063 |
| US30Y | US 30 Year Treasury | 4.688% | -0.057 |
Investors are digesting the latest economic data and policymakers' comments as they consider the outlook for interest rates. Central bank officials have hinted in recent days and weeks that interest rates could be raised for longer than previously expected.
„I'm certainly not in a rush to cut interest rates,” New York Fed President John Williams said Thursday, adding that the level is tied to strength in the economy. Interest rates will eventually have to be cut, but that will depend on how the economy develops, he told Semaphore's World Economic Summit.
Elsewhere, Atlanta Fed President Rafael Bostic said rate cuts won't come until later this year and is „comfortable being patient,” while Minneapolis Fed President Neel Kashkari suggested not starting rate cuts until 2025. Other central bank policymakers, including Chairman Jerome Powell.
On Thursday, the Philadelphia Fed's manufacturing survey came in much higher than expected, indicating strength in the sector.
Investors also continued to consider how geopolitical tensions could affect markets. A source told NBC News that Israel launched a limited direct military strike on Iranian soil early Friday.