U.S. Treasury yields were little changed on Friday as investors anticipated key jobs data, and the Fiscal Responsibility Act cleared the Senate, ensuring that the U.S. would not default on its debt obligations.
Yields and prices have an inverted relationship and one basis point equals to 0.01%.
On Thursday, the Senate followed the House’s example and voted to pass the Fiscal Responsibility Act, which raises the debt ceiling and limits government spending for two years. This comes just days before the June 5 deadline, on which the U.S. could have defaulted on its debt obligations, causing global economic turmoil.
President Joe Biden is expected to sign the bill into law on Friday after weeks of tense negotiations and jitters about whether lawmakers would approve the deal, which has been criticized by Republicans and Democrats alike.
Elsewhere, investors considered the outlook for the U.S. economy and Federal Reserve monetary policy, keeping an eye on whether the central bank would continue its interest rate hiking campaign.