Bond yields remained within a limited range on Friday as the market prepared for essential inflation data to be released next week.

What’s Happening

  • The yield on the 2-year Treasury (BX:TMUBMUSD02Y) stood at 4.94%, representing a decrease of 0.9 basis points. It is important to note that yields move in the opposite direction of prices.
  • The yield on the 10-year Treasury (BX:TMUBMUSD10Y) was at 4.24% with a decrease of 0.4 basis points.
  • The yield on the 30-year Treasury (BX:TMUBMUSD30Y) increased by 0.5 basis points, reaching 4.35%.

Market Drivers

On Thursday, several Federal Reserve officials expressed their views, creating certainty that the Fed would not raise rates in September. However, there were mixed opinions regarding whether the central bank would need to raise rates in November.

Lorie Logan, the Dallas Fed President, stated that if the Fed decides to postpone a rate hike at the upcoming meeting, it does not necessarily imply a permanent halt to future rate hikes.

No significant economic or corporate releases are scheduled for Friday, except for a speech from San Francisco Fed President Mary Daly at 11 a.m. Eastern time. The highly anticipated consumer price index for August will be published on Wednesday.

Leave a Reply

48  +    =  52