Shorter-term Treasury yields rose on Friday as investors considered the path ahead for interest rates and awaited data that could provide hints about the state of the economy.
The 2-year Treasury yield traded about 7.3 basis points higher at 4.720%. Meanwhile, the benchmark 10-year rate added 4 basis points to trade at 3.769%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Investors considered what could be next for interest rates and the economy after the Federal Reserve decided against another rate hike earlier this month, but indicated rates could still go higher later this year.
In comments published alongside the rate decision, the central bank indicated that it would use the break in its rate-hiking campaign to assess the effectiveness of its previous 10 consecutive increases. The Fed began tightening monetary policy in early 2022 with the goal of bringing down inflation.
Investors will now be closely following comments from Fed officials and scanning them for clues about when the potential further rate hikes could be coming, and what the triggers for them would be. St. Louis Fed President Jim Bullard and Fed Governor Christopher Waller are slated to speak Friday.
Attention also turned to key reports reflecting the state of the economy. Before this month's Fed policy meeting, many investors had been hoping for rate hikes to be halted as concerns about elevated rates dragging the U.S. economy into a recession had spread.
On Friday, June's preliminary Michigan consumer sentiment report showed one-year inflation expectations fell to 3.3% in June from 4.2% a month earlier. the preliminary June reading from the survey came in at 63.9, higher than expected. Markets will remain closed on Monday in observance of Juneteenth.