Treasury yields decline as investors digest Fed speaker comments

U.S. Treasury yields fell on Friday as investors digested remarks from Federal Reserve officials about the outlook for interest rates and the latest economic data.

At 4:22 a.m. ET, the yield on the 10-year Treasury was down by over six basis points to 3.7366%. The 2-year Treasury yield was trading at 4.7563% after declining by more than four basis points.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Investors digested comments that Fed speakers including Chairman Jerome Powell made throughout the week, which indicated that further interest rate hikes are on the horizon.

Speaking before the Senate Banking Committee on Thursday, Powell suggested policymakers would continue using interest rate increases to bring down inflation. However, compared with last year, there is now less urgency to “move quickly,” he said, adding that economic data would play a key role in the Fed’s decision-making.

That comes after Powell said Wednesday that the Fed’s battle with inflation still “has a long way to go.”

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