2-year Treasury yield rises to highest in a week after Powell says Fed can wait

U.S. government debt sold off on Friday, pushing 2- through 30-year yields higher, after Federal Reserve Chair Jerome Powell said the central bank can wait for clarity on the economic outlook and signaled no need to rush before making an interest-rate move.

What happened

• The yield on the 2-year Treasury BX:TMUBMUSD02Y rose 4 basis points to 4%, from 3.96% on Thursday. For the week, it rose less than 1 basis point.
• The yield on the 10-year Treasury BX:TMUBMUSD10Y climbed 3.6 basis points to 4.317%, from 4.281% on Thursday. For the week, it rose 8.8 basis points.
• The yield on the 30-year Treasury BX:TMUBMUSD30Y rose 3.9 basis points to 4.616%, from 4.577% on Thursday. For the week, it rose 10.2 basis points.
• Friday’s closing level for the 2-year yield was the highest since Feb. 27. Ten- and 30-year yields finished Friday’s session at their highest levels since Feb. 24.

What drove markets

Fed Chair Powell, speaking Friday at a monetary-policy forum at the University of Chicago Booth School of Business, signaled that the central bank intends to hold interest rates steady and wants to see greater certainty about where the U.S. economy is headed.