U.S. Treasury yields were higher on Friday, ending a week where the 10-year Treasury yield jumped amid new inflation data and comments from Federal Reserve Chair Jerome Powell that suggested the central bank may not be as aggressive next year with its rate-cutting campaign. The 10-year Treasury yield was last higher by about three basis point to 4.451%. The 10-year rate ended last week around 4.31%. The yield on the 2-year Treasury rose by nearly five basis points to 4.341%. The 2-year yield ended last week around 4.25%. One basis point equals 0.01% and yields and prices move in opposite directions. Investors monitored Powell’s speech on Thursday for hints about future monetary policy decisions. Powell said that strong U.S. economic growth means the central bank won’t need to quickly cut interest rates. “The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said in his speech. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”
Source: CNBC – Bonds

Federal Reserve Chair Jerome Powell said Thursday that strong U.S. economic growth will allow policymakers to take their time in deciding how far and how fast to lower interest rates. “The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said in remarks for a speech to business leaders in Dallas. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.” In an upbeat assessment of current conditions, the central bank leader called domestic growth “by far the best of any major economy in the world.” Specifically, he said the labor market is holding up well despite disappointing job growth in October that he largely attributed to storm damage in the Southeast and labor strikes. Nonfarm payrolls increased by just 12,000 for the period. Powell noted that the unemployment rate has been rising but has flattened out in recent months and remains low by historical standards. On the question of inflation, he cited progress that has been “broad based,” noting that Fed officials expect it to continue to drift back toward the central bank’s 2% goal. Inflation data this week, however, showed a slight uptick in both consumer and producer prices, with 12-month rates pulling further away from the Fed mandate.
Source: CNBC – Bonds