US Treasuries edged higher on Thursday as investors braced for the Federal Reserve’s next interest rate decision, which is expected on June 14.
At 5:37 am ET, the 10-year Treasury yield was trading more than 1 basis point higher at 3.799%. The 2-year government bond yield rose around 1 basis point to 4.557%.
Yields and prices are inversely related. One basis point equals 0.01%.
treasuries
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | US 1 Month Treasury Notes | 5.13% | +0.102 | 0.00% |
| US3M | 3-month US government bonds | 5.398% | +0.08 | 0.00% |
| US6M | 6-month US government bonds | 5.477% | +0.045 | 0.00% |
| US1Y | US Treasury bonds with a 1-year maturity | 5.231% | +0.043 | 0.00% |
| US2Y | US government bonds with a 2-year maturity | 4.563% | +0.013 | 0.00% |
| US10Y | 10-year US government bonds | 3.805% | +0.021 | 0.00% |
| US30Y | 30-year US government bonds | 3.959% | +0.017 | 0.00% |
Investors assessed the outlook for the economy and focused their attention on the forthcoming Fed meeting in a week of scant data on the economic data front.
Uncertainty about Fed interest rate policy has increased since the last central bank meeting, which raised interest rates by 25 basis points but hinted that rate hikes could be suspended or halted shortly.
Since then, however, various Fed officials have indicated that they don’t believe the rate hikes implemented so far have had the desired effect of lowering inflation and slowing the economy. Others argued that the full impact of higher interest rates simply hasn’t hit the economy yet.
Economic data released since the last central bank meeting has also fueled the debate. April consumer inflation numbers rose in line with expectations, while the April consumer spending index, the Fed’s preferred indicator of inflation, and the May jobs report came in higher than expected.
The May consumer inflation report is out on Tuesday, just a day before the Fed’s interest rate decision. Weekly initial jobless claims are due Thursday.