U.S. government debt yields remained higher on Friday after Federal Reserve Chair Janet Yellen said an interest rate hike will be appropriate this year if the economy improves.
Five-, seven- and 10-year note yields hit session peaks in knee-jerk reaction to Yellen's comments at the Greater Providence Chamber of Commerce. The central banker predicted moderate growth this year and beyond, explaining that economic headwinds are waning.
Turning to the labor market, Yellen said it is "approaching full strength," and that unemployment should fall to near 5 percent by the end of the year.
Benchmark 10-year Treasury note yields, which move inversely to prices, were last at 2.21 percent after hitting a session high of 2.23 percent shortly after the release of her prepared remarks. Three- and seven-year notes also remained higher, but pulled back from their highs as the speech was underway.
Thirty-year U.S. bond yields were little changed at 2.983 percent.