U.S. Treasury yields inched higher as investors look ahead to Federal Reserve Chairman Jerome Powell’s speech at the Fed’s annual economic symposium on Friday.
At 7 a.m. ET, the 10-year Treasury yield rose over 1 basis point to 4.308%. The 2-year yield was also one basis point higher at 3.76%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Investors are keeping an eye on the Fed’s annual meeting in Jackson Hole, Wyoming, where central bankers are gathered to make decisions on future monetary policy.
Powell is set to give a speech on Friday at the meeting, which could offer some insights into the path of interest rates.
Traders are pricing in nearlyt an 80% chance of the central bank cutting interest rates at its next policy meeting in September, according to the CME Group’s FedWatch tool.
The FOMC minutes, released on Wednesday, showed that the Fed was concerned about both inflation and the labor market and felt it was too soon to cut interest rates. Fed governors Christopher Waller and Michelle Bowman dissented with the decision to keep rates steady, the first time two board members have done so since 1993.
“The Fed is worried about inflation accelerating as companies pass tariffs on to consumers,” said David Russell, global head of market strategy at TradeStation. “The minutes are consistent with Powell’s hawkish comments last meeting. The bulls might get some cold water splashed in their faces at Jackson Hole.”
On the economic data front, investors are awaiting existing home sales data and weekly initial jobless claims.
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