Traders work on the floor of the New York Stock Exchange (NYSE) during the initial public offering (IPO) of DPC Holdings, Inc. on Thursday, June 25, 2026, in New York, USA.
Michael Nagle | Bloomberg | Getty Images
of 2 years treasury Banknote yields fell on Friday after Minneapolis Fed President Neel Kashkari changed his outlook and said he expects one rate hike this year.
Mr. Kashkari is a voting member of the Federal Open Market Committee (FOMC), which makes policy decisions for the Federal Reserve Board (Fed).
Lower energy prices also supported bond prices, reducing the expected future impact of higher oil and gasoline prices.
The two-year Treasury yield, which is closely linked to the Federal Reserve’s short-term interest rate decisions, fell more than 3 basis points to 4.086%. 10 year treasury The benchmark interest rate for mortgages, auto loans and credit card debt fell 2 basis points to 4.372%. of 30 year treasury Yields, which traditionally fluctuate in response to geopolitical events, rose less than 1 basis point to 4.865%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
In his remarks a week after the FOMC decided to leave policy interest rates unchanged, Kashkari said there was a high possibility that interest rates would be raised by the end of the year, as the economy continues to be hit by the sharp increase in inflation associated with the fighting in the Middle East.
“In March, we had a goal of one rate cut by the end of the year, but in June we changed that to one rate hike by the end of the year,” the policymaker said during a panel discussion at the Aspen Ideas Festival. “This is a pencil, so we need to see how the data comes in.”
U.S. Treasury yields ended little changed on Thursday after the Fed’s preferred inflation measure, the core consumer spending index that excludes food and energy prices, hit 3.4% in May, the highest level since October 2023, and up 0.3% from April. All-item PCE rose to a seasonally adjusted annual rate of 4.1%, the highest level since spring 2023.
The increase in the Fed’s preferred inflation measure comes amid an increasingly hawkish tone on inflation from the central bank’s new chairman, Kevin Warsh.
Oil prices fell early Friday, even as investors were closely monitoring new tensions in the Middle East.
us west texas intermediate Futures fell 3.74% to close at $69.23 per barrel. brent crude oilThe international price benchmark fell 4.34% to close at $71.99.
U.S. officials said Iran was responsible for the attack on a Singapore-flagged cargo ship near the Strait of Hormuz and said Iraq was considering withdrawing from OPEC amid a dispute over oil production quotas.
