US Treasury yields rose on Friday as investors await next week’s Federal Reserve monetary policy meeting, when officials will announce a new interest rate decision.
As of 5:38 am ET, the 10-year Treasury yield was up almost 4 basis points to 3.749%. The 2-year Treasury yield traded more than 3 basis points higher at 4.556%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
treasuries
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | US 1 Month Treasury Notes | 5.195% | +0.061 | 0.00% |
| US3M | 3-month US government bonds | 5.325% | +0.06 | 0.00% |
| US6M | 6-month US government bonds | 5.424% | +0.036 | 0.00% |
| US1Y | US Treasury bonds with a 1-year maturity | 5.186% | +0.029 | 0.00% |
| US2Y | US government bonds with a 2-year maturity | 4.562% | +0.043 | 0.00% |
| US10Y | 10-year US government bonds | 3.753% | +0.039 | 0.00% |
| US30Y | 30-year US government bonds | 3.912% | +0.029 | 0.00% |
Ahead of the Fed’s next meeting on June 13-14, investors pondered what might happen next for interest rates. Uncertainty over whether the central bank will continue or pause its rate-hiking campaign has mounted in recent weeks as both Fed officials and economic data have given mixed signals.
According to the Labor Department, weekly initial jobless claims rose on Thursday, reaching the highest level since October 2021.
Some investors took this as an indication that higher rates were having the effect the Fed wanted and that the economy, including the job market, was cooling, leading them to believe the Fed would not hike rates further next week. According to the CME FedWatch tool, traders currently see a nearly 28% chance of a rate hike.
More data points are expected before the Fed makes its decision, including Tuesday’s May Consumer Inflation Report. No key dates are planned for Friday.