U.S. Treasury yields were lower on Friday as investors considered the path ahead for interest rates as they digested the latest economic data.
The yield on the 10-year Treasury was down more than 1 basis point at 3.664%. The 2-year Treasury yield was about 4 basis points lower at 3.603.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Attention began to turn to the Federal Reserve meeting next week at which the central bank is widely expected to cut interest rates. Traders were last pricing in a 59% chance of a 25-basis-point rate cut and a 41% probability of a 50-basis-point reduction, according to CME Group’s FedWatch Tool.
The Fed’s meeting is set to begin Tuesday and conclude Wednesday with the interest rate decision and a postmeeting press conference. The central bank will also release its latest economic projections then.
Two key data points were released earlier this week: the consumer price index and…
