U.S. Treasury yields move higher as investors monitor economic data, Fed speeches

US Treasury yields were higher on Friday, but closed down for the week, as market participants assessed the prospect of major central banks implementing further interest rate hikes to curb soaring inflation.

The yield on the benchmark 10-year Treasury note trading was higher at 3.134%, down from last Friday’s close of 3.231%.

Meanwhile, the yield on the 30-year Treasury bond rose around 8 basis points to 3.263%, compared to last Friday’s close of 3.282%.

Yields move inversely to prices.

On the data front, a final reading of consumer sentiment for June showed a slight easing of inflation expectations to 5.3% over the next year. The preliminary reading earlier this month showed an expected 5.4% rise in prices.

Federal Reserve Chairman Jerome Powell has pointed to preliminary reading as a reason the Fed implemented its biggest rate hike since 1994 on June 15. Yields trimmed their gains after the reading was released.

Powell on Thursday reaffirmed the US central bank’s “unconditional” commitment to reining in 40-year high inflation levels.

Speaking at the US House of Representatives Financial Services Committee, Powell acknowledged that sharply higher interest rates could push up disease price but said that restoring stability was “something that we need to do.”


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