2-Year Treasury Yield Climbs after Fed Decision

Investors were looking for clues on the future directionof interest rates and eagerly awaited data that could shed light on the state of the economy, leading to an increase in shorter-term Treasury yields on Friday.

The 2-year Treasury yield experienced a rise of approximately 4.1 basis points, reaching 4.686%. The benchmark 10-year rate remained unchanged at 3.728%.

Yields and prices move in opposite directions, with each basis point equaling 0.01%. As investors considered the future of interest rates and the overall economic outlook, the Federal Reserve's recent decision not to pursue another rate hike this month, while leaving open the possibility of future increases, was at the forefront of their minds.

The central bank emphasized its intention to use this pause in its rate-hiking campaign to evaluate the effectiveness of the previous ten consecutive increases.

Market participants will now closely monitor comments from Fed officials for clues about the timing and triggers for potential future rate hikes.

Analysts are closely watching reports that could provide insights into the state of the economy. Prior to this month's Federal Reserve policy meeting, many investors had hoped for a slowdown of rate hikes, fearing that higher rates would drag the U.S. economy into a recession.

On Friday, one of the early indicators of broader consumer sentiment arrives in the form of thepreliminary Michigan consumer sentiment report for June. Market watchers are observing with interest.