U.S. government debt yields ticked upward Friday, with the 2-year Treasury note notching a nine-year high ahead of a Federal Open Market Committee meeting next week. The Federal Reserve is widely expected to hike rates at its monthly meeting.
The yield on the short-term 2-year Treasury note hit a high of 2.295 percent, its highest level since Sept. 19, 2008, when the note yielded as high as 2.313 percent.
Long-term debt rates, however, remained lower for the week following softer economic data and turmoil in Washington.
The yield on the benchmark 10-year Treasury note was higher at 2.846 percent at 3:52 p.m. ET, while the yield on the 30-year Treasury bond was higher at 3.081 percent. Bond yields move inversely to prices.
A mix of data supported yields Friday, including a larger-than-expected increase in industrial output. Production jumped 1.1 percent in February, the largest increase in four months after a weather-related rebound in construction and a better results from oil and mining.
Manufacturing output rose 1.2 percent, its largest gain since October, the Federal Reserve reported.
Despite the uptick on the final day of trading for the week, long-term yields remain off highs clinched earlier in the week following a week of soft economic data.
On Tuesday, the Labor Department reported that consumer prices rose 0.2 percent in February, matching Wall Street expectations and keeping fears of runaway inflation at bay. On a year-over-year basis, the consumer price index rose 2.2 percent, just ahead of the 2.1 percent increase reported in January.
Core CPI — which excludes volatile food and energy prices — was up 0.2 percent for the month and 1.8 percent annualized. The latest reading comes a month after the CPI posted its largest gain in four years of 0.5 percent, sparking fears of rising prices and a more aggressive Federal Reserve.