U.S. Treasury yields ticked higher on Friday as investors considered the path ahead for interest rates after the latest comments from Federal Reserve officials.
The yield on the 10-year Treasury added around 5 basis points to 4.24%. The 2-year Treasury yield also rose more than 4 basis points higher to 4.51%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investors digested remarks from Fed policymakers made throughout the week as they weighed the potential path ahead for interest rates.
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San Francisco Fed President Mary Daly indicated on Thursday that she was still hoping for more data to provide evidence of inflation sustainably returning to the central bank's 2% target rate. There had recently been some good data, she noted, but said "we're not there yet."
Daly also suggested making monetary policy decisions was currently a fine balance and there were risks of cutting too soon, or waiting for too long.
Earlier in the week, Fed Governor Christopher Waller said the central bank was "getting closer to the time when a cut in the policy rate is warranted," even as the "final destination" had not yet been reached.
Money Report
Fed Chairman Jerome Powell also this week said that rate cuts would begin before inflation reaches the 2% target.
Fresh inflation data is set to be released next week in the form of the personal consumption expenditure price index, which is the Fed's preferred inflation gauge. This will be some of the last key data before the central bank meets at the end of the month.
Markets are widely expecting the Fed to keep rates unchanged this month, but traders were last pricing in an around 98% chance of a September rate cut, CME Group's FedWatch tool showed.
