Treasury yields rise as investors weigh rate outlook

U.S. Treasury yields increased as investors analyzed comments made by Federal Reserve officials regarding the future of interest rates. The 10-year Treasury yield rose by over one basis point to 4.2000%, while the 2-year Treasury yield was slightly higher to 4.4706%. Fed policymakers’ remarks throughout the week were being considered by investors as they assessed the potential trajectory of interest rates. San Francisco Fed President Mary Daly expressed the need for more data to determine if inflation would reach the central bank’s target rate. Fed Governor Christopher Waller believed a rate cut would be necessary soon. Fed Chairman Jerome Powell stated that rate cuts would occur before inflation hits the target. Investors are anticipating the release of fresh inflation data next week, which will be crucial before the Fed’s upcoming meeting.