U.S. Treasury yields declined on Friday as investors considered the latest economic data and remarks from Federal Reserve officials, and considered what this could mean for monetary policy. At 4:20 a.m. ET, the yield on the 10-year Treasury was down by over five basis points to 4.5878%. The 2-year Treasury yield was last at 4.9622% after falling by more than two basis points. Yields and prices move in opposite directions. One basis point is equivalent to 0.01%. Investors digested the latest economic data and remarks from policymakers as they considered the outlook for interest rates. Fed officials have in recent days and weeks indicated that interest rates may remain elevated for longer than previously anticipated. “I definitely don’t feel urgency to cut interest rates,” New York Fed President John Williams said on Thursday, adding that this position was linked to strength in the economy. Interest rates would eventually need to be cut, but that would depend on how the economy develops, he said at Semafor’s World Economy Summit.
Source: CNBC – Bonds
