U.S. Treasury yields moved higher on Thursday as investors digested a range of comments by Federal Reserve officials and what they could mean for interest rates.
The yield on the 10-year Treasury was trading around 4.18.4% at 6:10 a.m. ET, up around 4 basis points. The yield on the 2-year Treasury was also 3 basis points higher at 4.461%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
It comes as traders increasingly bet on a September interest rate cut by the Federal Reserve, with a reduction in July now seen as highly unlikely.
There is now a less than 5% chance that the Fed’s target range for the federal funds rate, its key rate, will be lowered in July, according to the CME FedWatch tool. However, the odds on a September reduction — from 5.25-5.5% to 5-5.25% — is currently at over 90%.
It comes after Fed Governor Christopher Waller on Wednesday said that he thinks cuts are near, but stressed that he…
