US Treasury yields continue climb ahead of auctions

  • On Wednesday, the Fed announced an increase in its benchmark interest rate by a quarter point to a target range between 2.25 to 2.5 percent, in a widely anticipated move.
  • It marked the fourth increase this year by the U.S. central bank and the ninth since it began normalizing rates in December 2015.
  • Bond markets initially rallied after the hike, with equities slumping, but have edged lower overnight.

U.S. government debt prices continued to edge lower on Friday morning, reversing a recent rally, as investors digest the fourth rate hike this year from the U.S. Federal Reserve.

The yield on the benchmark 10-year Treasury note climbed to 2.7956 percent by 4:30 a.m. ET with the yield on the 30-year Treasury bond rising to 3.0224 percent. Bond yields move inversely to prices.

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 Wednesday, the Fed announced an increase in its benchmark interest rate by a quarter point to a target range between 2.25 to 2.5 percent, in a widely anticipated move. It marked the fourth increase this year by the U.S. central bank and the ninth since it began normalizing rates in December 2015. Bond markets initially rallied after the hike, with equities slumping, but have edged lower since.

Fixed-income investors will focus on $131 billion of auctions scheduled for next week, when liquidity is expected to be thin due to the Christmas holidays. The government raised $101 billion in the same series of auctions last year, according to Reuters.

The fragile mood in financial markets also intensified as President Donald Trump refused to sign legislation to fund the U.S. government on Thursday, raising the risk of a federal shutdown over the weekend.

On the data front, investors are likely to monitor a flurry of economic reports on Friday. Durable goods and personal income figures for November are both scheduled to be released at around 8:30 a.m. ET.

Philly Fed non-manufacturing data and a final reading of consumer sentiment for December are due to be published later in the trading session.

—CNBC's Sam Meredith contributed to this article.