U.S. Treasury yields were little changed on Friday as investors considered what could be ahead for inflation and monetary policy following comments from Federal Reserve Chair Jerome Powell.
At 5:22 a.m. ET, the yield on the 10-year Treasury was trading 1 basis point higher at 4.64%. The yield on the 2-year Treasury was last up by less than 1 basis points at 5.028%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Yields had risen Thursday after a 30-year bond auction was met with muted demand that was at the lowest level in around two years, with the yield on the 10-year Treasury climbing by as many as 13 basis points.
Investors also assessed the outlook for the economy and how this could impact monetary policy after Fed Chair Powell said on Thursday that the central bank is “not confident” it has done enough to bring inflation back to the 2% target range.
Powell noted that inflation remains too high, adding that despite the progress being made in lowering it, there is still “a long way to go.”
October’s consumer and producer price index readings are expected next week.
Investors have been considering the path ahead for interest rates, with many hoping that the Fed is done with hiking rates after the central bank left rates unchanged for the second time in a row when it met last week. Questions about how long rates will stay elevated for have also spread among investors.
On Friday, more Fed officials are set to make remarks that could provide fresh hints about the interest rate outlook, and the preliminary consumer sentiment report for November is expected.
