Bond yields were steady Friday as expectations have firmed the Federal Reserve will make one more rate increase before pausing.
- The yield on the 2-year Treasury TMUBMUSD02Y,
4.119%was 4.14%, down 0.3 basis points. Yields move in the opposite direction to prices.
- The yield on the 10-year Treasury TMUBMUSD10Y,
3.529%was 3.54%, down 0.1 basis points.
- The yield on the 30-year Treasury TMUBMUSD30Y,
3.744%was 3.75%, down 0.2 basis points.
What’s driving markets
A week of Federal Reserve officials commenting has led markets to price in an 85% chance the Fed will make a quarter-point rate rise in May, with expectations the Fed will pause from there.
The latest economic data points to a deteriorating economy. The Conference Board’s leading economic index, released Thursday, fell to its lowest level since Nov. 2020, as the number of people collecting unemployment benefits reached the highest level since Nov. 2021.
Friday’s economic calendar includes the preliminary Markit manufacturing and services reports.