Investors evaluate interest rate expectations

US Treasurys rose slightly on Thursday as investors prepare for the Federal Reserve’s upcoming interest rate policy decision, expected on June 14.

At 5:37 a.m. ET, the 10-year Treasury yield was trading above 1 basis point, at 3.799%. The two-year Treasury yield rose about 1 basis point, at 4.557%.

Yields and prices have an inverted relationship. 1 basis point equals 0.01%.


specific a company fruit changes % is changing
US1M US Treasury for one month 5.115% +0.087 0.00%
US3M US Treasury for 3 months 5.403% +0.085 0.00%
US6M US Treasury for 6 months 5.437% +0.005 0.00%
US1Y US Treasury for a year 5.242% +0.054 0.00%
US2Y US Treasury for two years 4.571% +0.021 0.00%
US10Y US Treasury for 10 years 3.809% +0.025 0.00%
US30Y US Treasury for 30 years 3.961% +0.019 0.00%

Investors assessed the outlook for the economy and focused their attention on the upcoming Federal Reserve meeting in a week considered light on the economic data front.

Uncertainty about the Fed’s interest rate policy has grown since the last central bank meeting, where it raised interest rates by 25 basis points, but it has hinted that it may pause or completely halt an imminent rate hike.

Since then, however, several Fed officials have indicated that they do not believe that the rate hikes implemented thus far have had the desired effect of lowering inflation and calming the economy. Others have argued that the full impact of the higher rates has not yet passed through to the economy.

Economic data published since the last meeting of the central bank has sparked controversy. April consumer inflation numbers rose in line with expectations, while the April PCE price index, the Fed’s preferred measure of inflation, and the May jobs report came in higher than expected.

The consumer price inflation report for May is due on Tuesday, just a day before the Fed’s interest rate decision. Initial weekly jobless claims are due Thursday.

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