U.S. Treasury yields held steady on Thursday as investors assessed expectations for the Federal Reserve’s interest rate policy plans and awaited central bank speaker comments.
The yield on the benchmark 10-year Treasury yield was up by around one basis point to 3.72% at 4:20 a.m. ET. The 2-year Treasury yield was last trading at around 4.3992% after rising by just over one basis point.
The Fed’s December meeting minutes, released on Wednesday, indicated that central bank officials are expecting rates to stay elevated and not be cut in 2023. Fed officials would stick to their current restrictive policy approach until they are satisfied that inflationary pressures are easing, the minutes suggested.
Many investors have been concerned about the pace of the Fed’s rate hikes throughout 2022 leading the U.S. economy into a recession.
At its December meeting, the Fed announced a 50 basis point rate hike, which was a slight decrease from the 75 basis point increases implemented at each of its previous four meetings.