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US Treasurys lower amid Dudley remarks

Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.
Frank Polich | Reuters
Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.

U.S. government debt prices were lower on Friday, as investors digested comments from a key Federal Reserve official.

New York Fed President William Dudley — a voting member of the central bank's policymaking committee — said in prepared remarks he expects the U.S. economy to grow about 2 percent in 2016.

"Although the downside risks have diminished since earlier in the year, I still judge the balance of risks to my inflation and growth outlooks to be tilted slightly to the downside," Dudley said.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, sat higher at 1.7203 percent, while the yield on the 30-year Treasury bond was also higher, at 2.5530 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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On the data front, wholesale inventories fell more 0.5 percent, more than expected.

Fed Chair Janet Yellen touted the strength of the U.S. economy on Thursday, rebuffing political rhetoric suggesting a bubble is ready to burst.

"I certainly wouldn't describe this as a bubble economy," Yellen said, noting a "healing" labor market and a 5 percent headline unemployment number.

Yellen's comments came during a panel with former Fed Chairs Ben Bernanke, Paul Volcker and Alan Greenspan at the International House in New York.