US Treasury yields fell slightly on Friday to end a volatile week as central banks around the world signaled a more aggressive effort to rein in soaring inflation.
At around 3:10 a.m. ET, the yield on the benchmark 10-year Treasury was slightly lower at 3.2824%, while the yield on the 30-year Treasury fell to 3.3372%. Yields move inversely to prices. The 2-year yield, which is generally more sensitive to changes in monetary policy, rose to 3.1722%.
The S&P 500 is on track for its worst week since March 2020 as investors flee risky assets amid fears that more monetary policy tightening could tip the U.S. economy into recession. Some investors sold stocks and rushed into bonds on Thursday, pushing up Treasury prices and cutting yields.
The Federal Reserve on Wednesday raised its key rate by 75 basis points, the biggest hike since 1994, as annual inflation in the United States hit a 40-year high of 8.6% in May.
Members of the Federal Open Market Committee reiterated the Fed’s commitment to stabilizing inflation and indicated that a stronger path of rate hikes lies ahead. Officials also cut their outlook for economic growth in 2022 to just 1.7% from 2.8%.
The Swiss National Bank then surprised markets with its first rate hike in 15 years on Thursday, while the Bank of England implemented its fifth straight hike.
Friday is a relatively light day for economic data, with May industrial production data due out before the opening bell. No Treasury auction is planned.