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June 24, 2022

U.S. Treasury yields were higher on Friday, as market participants assessed the prospect of major central banks implementing further interest rate hikes to curb soaring inflation.

The yield on the benchmark 10-year Treasury note rose around 2 basis points to 3.089%, while the yield on the 30-year Treasury bond also rose around 2 basis points to 3.199%. Yields move inversely to prices.

Federal Reserve Chairman Jerome Powell on Thursday reaffirmed the U.S. central bank’s “unconditional” commitment to reining in 40-year high inflation levels.

Speaking at the U.S. House of Representatives Financial Services Committee, Powell acknowledged that sharply higher interest rates could push up unemployment but said that restoring price stability was “something that we need to do.”

The Fed increased its benchmark funds rate by 75 basis points last week — its largest rate increase since 1994. The Swiss National Bank also surprised markets in recent days with its first rate hike since 2007, while the Bank of England implemented its fifth rate rise in a row.

On the data front, new home sales for May and a final reading of consumer sentiment for June will be released at 10.00 a.m. ET.

Elsewhere, Fed speakers are likely to be closely monitored throughout the session. St. Louis Fed President James Bullard and San Francisco Fed President Mary Daly will deliver remarks on the U.S. economy at separate events on Friday.

Source: CNBC
Image Source: Pixabay