In this articleUS2YUS10Y your favorite stocksCREATE FREE ACCOUNTU.S. Treasury yields rose on Friday as investors weighed the state of the U.S.
economy and future monetary policy after the Federal Reserve on Wednesday cut interest rates for the first time this year.The 10-year Treasury note yield gained more than 3.1 basis points to 4.135%, and earlier reached 4.145%, while the 2-year Treasury yield added 1 basis point to 3.578% after touching 3.59%.
The intraday yield on both was the highest in two weeks, since Sept.
5.The 30-year Treasury bond yield added 2.7 basis points to 4.747%.One basis point is equal to 0.01%, and yields and prices move in opposite directions.The backup in longer-dated U.S.
Treasury yields is counterintuitive against the backdrop of sliding short-term rates.
But investors in longer maturity debt weigh expectations not only for future short-term rates but also the ly course of economic growth, inflation and government finances, including how much the debt U.S.
have to sell to finance current spending and roll over existing debt.The Federal Reserve this week lowered its benchmark overnight lending rate by a quarter percentage point to a range between 4.00%-4.25%.Fed Chairman Jerome Powell described the move as "risk management," and policymakers indicated two more rate cuts are ly at their remaining meetings in late October and early December this year."First, were still benefiting from the Fed's announcements on Wednesday, where the dovish shift in the dot plot led to growing anticipation of further cuts ahead," Deutsche Bank analysts flagged in a Friday note.
"Second, we had some stronger data on the U.S. labor market, with the initial jobless claims posting their biggest weekly decline since 2021.
So that helped to reassure investors that an economic slowdown would be avoided."Fewer jobless claims released in a weekly report on Thursday calmed investor concerns a slowing U.S.
economy and recent signs of cracks in the labor market, after a spike in claims last week led to worries that layoffs are growing.No economic data is set for release Friday, but investors next week will look to the August personal consumption expenditures index — the Fed's preferred inflation gauge — for further insights into the pace of price pressures and the effect of tariffs on the U.S.
economy.