U.S. government debt yields rose Friday morning, as traders looked ahead to fresh data and weighed the possibility of a less dovish tone from the Federal Reserve next week.
At around 2:00 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.0773%, while the yield on the 30-year Treasury bond was higher at 2.6060%.
Investors have been considering whether the Fed might not be as dovish as expected when it meets next week. This was on the back of strong economic data out on Thursday and comments from the European Central Bank that the risk of a recession in the region is low.
Traders are currently pricing a cut in rates by a quarter percentage point, not a half point, as some analysts had previously forecast ahead of the Fed’s meeting.
On Friday, traders will be monitoring new economic data, with U.S. GDP (gross domestic product) figures due at 08:30 a.m. ET. It is expected to come in at 1.8%, according to economists surveyed in CNBC/Moody’s Analytics Rapid Update.
There are no Treasury auctions scheduled for Friday.