Treasury yields were little changed on Friday as investors waited for several Federal Reserve officials to speak next week, seeking clearer insight into the central bank’s outlook for interest rates. The 10-year Treasury yield hovered near 4.10%, while the two-year yield remained around 3.61%, reflecting a cautious tone in bond markets as traders reassessed expectations for monetary policy
Federal Reserve Chair Jerome Powell’s recent comments appeared to dampen the likelihood of a rate cut in December, leaving investors focused on upcoming remarks from Governor Lisa Cook, Vice Chair for Supervision Michelle Bowman, and Governor Adriana Miran. Their perspectives could help clarify whether policymakers view current borrowing costs as sufficiently restrictive to contain inflation without stalling growth.
The lack of new government data, due to the ongoing shutdown, has further complicated market analysis. Typically, indicators such as consumer spending, payroll figures, and inflation readings help shape expectations for the Fed’s next steps. Without those signals, traders are relying more heavily on official commentary and market-implied probabilities to gauge sentiment across bonds and currencies.
The WSJ Dollar Index edged 0.1% higher to 96.86, suggesting modest support for the greenback amid global caution. With limited catalysts this week, analysts say the market’s subdued movement reflects a broader wait-and-see approach as investors look ahead to November’s policy discussions and economic updates.