U.S. Treasury yields were mixed on Thursday as investors digested the latest interest rate decision from the Federal Reserve and clues about the path ahead for rate cuts.
At 4:29 a.m. ET, the yield on the 10-year Treasury was down by over one basis points to 3.9462%, remaining below the 4% mark it had fallen under on Wednesday. The 2-year Treasury was last less than one basis point higher to 4.2313%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.462% | +0.084 |
| US3M | U.S. 3 Month Treasury | 5.432% | +0.067 |
| US6M | U.S. 6 Month Treasury | 5.206% | +0.031 |
| US1Y | U.S. 1 Year Treasury | 4.785% | +0.059 |
| US2Y | U.S. 2 Year Treasury | 4.235% | +0.006 |
| US10Y | U.S. 10 Year Treasury | 3.948% | -0.017 |
| US30Y | U.S. 30 Year Treasury | 4.196% | -0.019 |
The Federal Reserve on Wednesday announced that it would keep interest rates unchanged for the fourth time in a row and provided fresh hints about the path ahead for interest rates.
In a press conference following the interest rate decision, Fed Chairman Jerome Powell said it was unlikely that rates would be cut at the next Fed meeting in March. However, he said that rate cuts would likely take place this year.
The Fed’s policy statement, which was released alongside the rate decision, also indicated that further rate hikes would no longer be on the table. That marked a change from the Fed’s last policy meeting in December.
Investors also looked ahead to fresh economic data due on Thursday and Friday. Weekly initial jobless claims figures and ISM’s manufacturing index are slated for Thursday, before the January jobs report — including nonfarm payrolls and unemployment figures — is out Friday.
Elsewhere, the Bank of England is due to announce its latest interest rate decision on Thursday. The central bank is widely expected to hold rates steady, but investors will be looking to the Bank of England for hints about the outlook for rate cuts.
