Investors weigh the Fed’s policy and economic outlook

US Treasury yields fell slightly on Wednesday as investors factored in the outlook for the economy and central bank interest rates and looked to economic data for clues.

At 5:38 a.m. ET, the yield on the 10-year Treasury note was trading just over 2 basis points at 3.677%. The 2-year Treasury yield fell nearly 2 basis points, at 4.504%.

Yields and prices move in opposite directions. 1 basis point equals 0.01%.

Investors weighed what could be on the horizon for the economy and the Fed’s monetary policy, particularly in terms of interest rates, ahead of the June 13-14 central bank meeting.


specific a company fruit changes % is changing
US1M US Treasury for one month 5.202% +0.078 0.00%
US3M US Treasury for 3 months 5.381% +0.047 0.00%
US6M US Treasury for 6 months 5.48% +0.048 0.00%
US1Y US Treasury for a year 5.251% +0.021 0.00%
US2Y US Treasury for two years 4.517% -0.008 0.00%
US10Y US Treasury for 10 years 3.687% -0.013 0.00%
US30Y US Treasury for 30 years 3.856% -0.019 0.00%

At its latest meeting, the central bank indicated that its campaign to raise interest rates may end soon. However, Fed officials have since given mixed messages about whether they believe further tightening is necessary for the central bank to achieve its goals of easing inflation and cooling the economy.

Recent economic data pointed to the resilience of the economy, including continued strength in the labor market, which eased recession fears but also led some investors to believe in the possibility of a rate hike. About a quarter of traders think the Fed will raise interest rates when it meets next week, according to the CME FedWatch tool.

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Little major economic data is expected before the meeting. On Wednesday, the trade balance and import and export numbers for April are expected.

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