Treasury yields edge lower as investors weigh the state of the U.S. economy

U.S. Treasury yields were slightly lower on Friday as investors awaited more economic data, and assessed the latest comments from Federal Reserve officials on stubborn inflation and the potential impact of tariffs.

At 4:40 a.m. ET, the 10-year Treasury yield slipped less than one basis point to 4.4896%, and the 2-year Treasury yield was also lower by less than one basis point at 4.2597%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Investors are anticipating some economic releases on Friday including January’s existing home sales figures, which will show the change in the number of residential buildings sold the previous month, and are expected to offer fresh insights about the health of the U.S. economy. The data will be published at 10 a.m. ET.

Investors are also looking out for the S&P Global Purchasing Managers’ Index, which tracks business activity across the manufacturing and services sectors, due in the morning.

Fed officials are expected to speak throughout the day including Fed governor Philip Jefferson and Fed Bank of San Francisco President Mary Daly.

They’re also digesting the latest comments that came from Fed officials on Thursday about the central bank’s rate-cutting plans.

Fed Bank of St Louis President Alberto Musalem said on Thursday that he believes price increases will continue to moderate, but risks of "moving higher seem skewed to the upside." So, policy should "remain modestly restrictive."

Atlanta Fed President Raphael Bostic expressed a similar view saying, "this is no time for complacency" as inflation could stay elevated, with added pressures from tariffs and immigration policy.