US Treasury yields fell slightly on Wednesday as investors pondered the outlook for the economy and central bank interest rates, looking to economic data for guidance.
At 5:38 am ET, the 10-year Treasury bond yield was trading a little over 2 basis points lower at 3.677%. The yield on two-year government bonds recently fell by around 2 basis points to 4.504%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Ahead of the June 13-14 central bank meeting, investors weighed what could be in store for the economy and for the Federal Reserve’s monetary policy, particularly with regard to interest rates.
treasuries
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | US 1 Month Treasury Notes | 5.202% | +0.078 | 0.00% |
| US3M | 3-month US government bonds | 5.381% | +0.047 | 0.00% |
| US6M | 6-month US government bonds | 5.48% | +0.048 | 0.00% |
| US1Y | US Treasury bonds with a 1-year maturity | 5.251% | +0.021 | 0.00% |
| US2Y | US government bonds with a 2-year maturity | 4.514% | -0.011 | 0.00% |
| US10Y | 10-year US government bonds | 3.685% | -0.015 | 0.00% |
| US30Y | 30-year US government bonds | 3.854% | -0.021 | 0.00% |
At its last meeting, the central bank indicated that its rate hike campaign could end soon. Since then, however, Fed officials have expressed mixed views on whether they think further tightening is necessary for the central bank to meet its goals of fighting inflation and cooling the economy.
Recent economic data pointed to resilience in the economy, including continued strength in the labor market, which eased recession concerns but also led some investors to believe that further rate hikes were likely. About a quarter of traders believe the Fed will hike rates at next week’s meeting, according to the CME FedWatch tool.
Little major economic data is expected ahead of the meeting. On Wednesday, the trade balance and the import and export figures for April are expected.