U.S. Treasury yields were slightly higher Wednesday as investors weighed the latest remarks from Federal Reserve officials, looking for clues on the path ahead for interest rates.
The yield on the 10-year Treasury was up by more than 2 basis points at 4.486%. The yield on the 2-year Treasury was last up by just over 1 basis point to 4.43%.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
Investors considered comments from Federal Reserve officials as they weighed when and how often interest rates may be cut this year.
Fed officials speaking this week have broadly echoed the sentiment expressed in the central bank’s monetary policy guidance issued at the conclusion of its latest meeting earlier this month.
On Tuesday, Minneapolis Fed President Neel Kashkari said he expected the Fed to hold rates steady for some time until the disinflation picture becomes clearer. Earlier in the week, Richmond Fed President Tom Barkin hinted that the central bank would wait until it had more confidence about inflation returning to its 2% target before moving to cut rates.
Kashkari on Tuesday also addressed concerns about rates potentially being hiked again, without excluding the possibility. Last week, Fed Chair Jerome Powell said the Fed was unlikely to hike rates at its next meeting.
More comments from Fed officials are expected throughout the week, which investors will be scanning for hints about the monetary policy outlook. As the week continues, investors will also be watching economic data points including weekly initial jobless claims on Thursday and consumer sentiment insights on Friday.
