US Treasury Yields Drop as Investors Weigh Economic Data and Fed Official Statements

On Friday, yields on US Treasuries declined as investors weighed the latest economic data and statements from Federal Reserve officials to assess the potential impact on monetary policy. At 4:20 a.m. ET, the yield on the 10-year Treasury dropped by more than five basis points to 4.5878%. The yield on the 2-year Treasury also fell by more than two basis points to 4.9622%.

Investors closely monitored Treasury yields, including those for the 1-month, 3-month, 6-month, 1-year, 2-year, 10-year, and 30-year Treasurys. They evaluated these yields in light of recent economic updates and policymakers’ statements regarding interest rates.

Federal Reserve officials have indicated that interest rates may need to stay elevated for a longer period than previously expected. For instance, New York Fed President John Williams noted on Thursday that there was no urgency to cut interest rates, citing the strength of the economy. Similarly, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari suggested that rate cuts may not come until the end of the year or even as late as 2025.

Geopolitical tensions added volatility to markets as reports emerged that Israel conducted a limited direct military attack on Iranian soil on Friday. This news coincided with unexpected strength in the Philadelphia Fed’s manufacturing survey and contributed to investors’ evaluation of various factors influencing the economy and financial markets.

Overall, yields on US Treasuries declined significantly on Friday as investors carefully considered various economic factors before making investment decisions based on their analysis of these factors.