U.S. Treasurys rose on Thursday after Dallas Federal Reserve President Lorie Logan said current economic data does not justify a pause in interest rate hikes.
The yield on the 10-year Treasury was up around 7 basis points at 3.65%. The 2-year Treasury yield was trading more than 10 basis points higher at 4.26%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Logan said in prepared remarks Thursday that a pause was not yet warranted based off currently available economic data. She added that the decision about how, or if, to move interest rates at the central next policy meeting is based on employment and inflation data that hasn't been released yet.
"After raising the target range for the federal funds rate at each of the last 10 FOMC meetings, we have made some progress," she said in a speech to bankers in San Antonio. "The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren't there yet."
Throughout the week, Fed speakers shared mixed views on what could be next especially for interest rate policy. While some suggested more needed to be done to lower inflation, others reiterated the idea that the impact of higher rates is not yet being felt fully.
Meanwhile, concerns about the U.S. defaulting on its debt eased slightly after both House Speaker Kevin McCarthy and President Joe Biden indicated that they believed a deal would be reached ahead of the June 1 deadline. That is the date the U.S. could become unable to pay its debt obligations, Treasury Secretary Janet Yellen warned.
Such a default could be highly problematic for economy, leading to significant gross domestic product declines and job losses and cause turmoil in bond and stock markets worldwide.