investors prepare for Fed policy meeting
At 5:38 a.m. ET, the yield on the 10-year Treasury was up by almost 4 basis points to 3.749%. The 2-year Treasury yield was trading more than 3 basis points higher at 4.556%.
U.S. Treasury yields rose on Friday as investors looked ahead to the Federal Reserve monetary policy meeting next week, where officials will announce a fresh interest rate decision.
Investors weighed what could be next for interest rates ahead of the Fed's next meeting on June 13 and 14. Uncertainty about whether the central bank will continue or pause its rate-hiking campaign has spread in recent weeks as both Fed officials and economic data have provided mixed signals.
Weekly initial jobless claims came in higher on Thursday, reaching the highest level since October 2021, according to the Labor Department.
Some investors saw this as a hint that elevated rates are having the impact desired by the Fed and are cooling the economy, including the job market, prompting them to believe that the Fed would not hike rates further next week. According to the CME FedWatch Tool, traders are currently pricing in a close to 28% chance of a rate increase then.
Further data points are expected before the Fed makes its decision, including May's consumer inflation report on Tuesday. No key data is scheduled for Friday.
Source: CNBC
