U.S. Treasury yields were lower on Friday as investors considered the outlook for interest rates and the economy after the Federal Reserve's latest rate cut decision.
At 3:43 a.m. ET, the yield on the 10-year Treasury was down by around three basis points to 4.3131%. The 2-year Treasury yield was last trading at 4.1849% after falling by more than three basis points.
Yields and prices have an inverted relationship and one basis point is equivalent to 0.01%.
Treasury yields had tumbled on Thursday after the Federal Reserve announced a 25 basis point interest rate cut to a target range of 4.50%-4.75%.
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The central bank's move had been widely expected by markets ahead of time. The Fed began easing rates at its previous meeting in September with a more aggressive 50 basis point reduction.
Investors paid close attention to guidance about the potential path ahead from the central bank and comments from Fed Chairman Jerome Powell at a post-meeting press conference.
Looking ahead, Powell said that policymakers would make their decisions on a meeting by meeting basis, and that there was no "preset course" for monetary policy. Powell and other central bank officials have frequently reiterated this message in recent months.
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Powell also noted that he was "feeling good" about the economy overall.
One Fed meeting remains on the agenda for this year on December 17 to 18, for which traders were last pricing in an around 75% chance of another rate cut, CME Group's FedWatch tool showed.
Investors on Friday will be watching out for the latest consumer sentiment insights, before gearing up for the October inflation report due next week.
