U.S. Treasury yields were slightly lower Thursday ahead of the Federal Reserve’s annual meeting in Jackson Hole, Wyoming.
The yield on the benchmark 10-year Treasury note fell 1.5 basis points to 3.09% after rising on Wednesday. The 10-year yield rose above the 3% level for the first time in a month earlier this week.
The 30-year Treasury yield fell 1 basis point to 3.30%, while the short-term 2-year Treasury yield fell 1 basis point to 3.374%. Yields move inversely to prices, and one basis point is equal to 0.01%.
Investors will be watching for news from the economic symposium, which is expected to provide an indication of the US central bank’s stance on the extent of further rate hikes needed to combat inflation.
Thursday morning also sees the release of the latest economic data on initial jobless claims, real gross domestic product data and GDP prices.
Fed Chairman Jerome Powell will deliver a speech at 10:00 a.m. ET on Friday.
“Powell is likely to emphasize that policy still has a long way to go before the Fed feels comfortable that it has decisively turned the corner on restoring price stability,” said Luke Bartholomew, senior economist at ‘Abrdn, in an email.
“This is important because the market has recently behaved as if the Fed has moved away from its hawkish stance.”
The US dollar eased against a basket of major currencies this week, sending gold prices to a one-week high as markets await further guidance from the Fed.
The US Treasury will auction $55 billion in 4-week notes, $50 billion in 8-week notes, and $37 billion in 7-year notes.
– CNBC’s Elliot Smith contributed to this report.