investors absorb Fed rate hike, Powell comments
At 6:11 a.m. ET, the yield on the 10-year Treasury was up by over 2 basis points to 3.873%. The 2-year Treasury yield was less than 1 basis point higher at 4.833%.
U.S. Treasury yields were up slightly on Thursday as investors considered the outlook for interest rates after the Federal Reserve's latest interest rate decision and comments from central bank chief Jerome Powell.
Investors weighed what could be next for interest rates and the U.S. economy after the Fed announced a further 25 basis point rate hike on Wednesday after its latest meeting ended.
In a press conference on Wednesday, Powell said there was a possibility of both further rate hikes and holding rates at the current level when policymakers next meet in September. He added that these decisions would continue to be data-dependent.
"We're going to be making careful assessments, as I said, meeting by meeting," Powell said.
Many investors have been hoping that the Fed will end its rate-hiking campaign soon as concerns about elevated rates leading the U.S. economy into a recession have taken hold.
The central bank chief on Wednesday also addressed the outlook for inflation, indicating that despite easing pressures from rising prices, there's still "a long way to go" before inflation returns to the Fed's 2% target.
The last consumer price index print came in at 3% on an annual basis. Investors will get fresh insights on Friday, when the personal consumption expenditures price index for June is due.
On Thursday, a preliminary reading of the gross domestic product for the second quarter is expected, as are June's durable goods orders and home sales figures and the latest weekly initial jobless claims data.
Elsewhere, the European Central Bank is due to announce an interest rate decision on Thursday, with markets anticipating another rate hike.
Source: CNBC
