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Rates rise for the week after Fed vows to stay the course with hikes

Traders work on the floor of the New York Stock Exchange.
Spencer Platt | Getty Images

U.S. government debt yields were set for week-to-date gains Friday following comments from the Federal Reserve earlier in the week and persistent strength in employment data.

Government debt rates rose throughout the week after the Fed's latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of "excesses" in financial markets.

The yield on the benchmark 10-year Treasury note was higher at around 3.196 percent at 4:03 p.m. ET, while the yield on the 30-year Treasury bond was higher at 3.378 percent. Bond yields move inversely to prices. The yield on the two-year Treasury note returned to levels not seen since 2008, rising above 2.912 percent Friday afternoon.

Minutes of the central bank's September meeting released Wednesday showed officials discussing plans to continue with its planned rate hikes, with some members suggesting there could come a time when the committee could exceed a neutral level in favor of more restrictive policy.

Federal Open Market Committee officials would likely use restrictive rates to clamp down on inflation and to address any imbalances the Fed sees in the financial markets.

U.S. Markets Overview: Treasurys chart

Overseas, Italian 10-year and 30-year bond yields hit their highest levels since early 2014 hours after European Central Bank President Mario Draghi criticized nations with budget plans that could hurt the broader region's economic health.

Investors have voiced concerns over Italy's 2019 budget, which was officially sent to the European Union this week for analysis. The anti-establishment and partly right-wing government in Italy plans to increase public spending in the country, sticking with campaign pledges before the general election in March this year.

— CNBC's Spriha Srivastava contributed reporting.

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