U.S. Treasurys rose on Thursday as investors prepared for the Federal Reserve’s next interest rate policy decision, which is expected on June 14.
At 4:03 a.m. ET, the 10-year Treasury yield was trading more than two basis points higher at 3.805%. The 2-year Treasury yield was up by over two basis points to 4.5714%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.115% | +0.087 | 0.00% |
| US3M | U.S. 3 Month Treasury | 5.398% | +0.08 | 0.00% |
| US6M | U.S. 6 Month Treasury | 5.477% | +0.045 | 0.00% |
| US1Y | U.S. 1 Year Treasury | 5.242% | +0.054 | 0.00% |
| US2Y | U.S. 2 Year Treasury | 4.557% | +0.007 | 0.00% |
| US10Y | U.S. 10 Year Treasury | 3.801% | +0.017 | 0.00% |
| US30Y | U.S. 30 Year Treasury | 3.953% | +0.011 | 0.00% |
Investors assessed the outlook for the economy and focused their attention on the upcoming Fed meeting in a week that is light on the economic data front.
Uncertainty about the Fed’s interest rate policy has grown since the central bank’s last meeting, at which is raised rates by 25 basis points but hinted that it may pause or entirely halt rate hikes imminently.
Since then, however, various Fed officials have indicated that they do not believe the rate hikes implemented so far have had the desired effect of bringing down inflation and cooling the economy. Others argued that the full impact of higher rates had simply not yet filtered through to the economy.
Economic data published since the central bank’s last meeting has also fueled the debate. April’s consumer inflation figures rose in line with expectations, while April’s personal consumption expenditure price index, which is the Fed’s favored inflation gauge, and May’s jobs report came in higher than anticipated.
May’s consumer inflation report is due Tuesday, just a day before the Fed’s rate decision. Weekly initial jobless claims are due Thursday.
