The 10-year Treasury yield rose again on Friday as rates turned around this week due to the Federal Reserve inching closer to pulling away its emergency pandemic stimulus.
The Fed said this week that it would taper its $120 billion in monthly bond purchases “soon” and Chairman Jerome Powell said he would need to see just one more good jobs report to convince him the economy is ready for the removal of this stimulus. The central bank then wants to wrap up the taper by mid-year next year, with a rate hike following before 2022 is out.
The 10-year Treasury note gained 2 basis points on Friday to 1.43% after ending last week at 1.37%. At one point earlier this week amid fears from a possible China property crisis, the yield touched as low as 1.29%. The yield on the 30-year Treasury bond was up less than a basis point at 1.93%. Yields move inversely to prices.
On the data front, new home sales data will be released at 10 a.m. ET.
There are also a couple of Fed speeches, with Fed Chair Jerome Powell, Fed Vice Chair Richard Clarida, and Fed Governor Michelle Bowman speaking at the “Fed Listens” event from 10 a.m. ET.
