NEW YORK: US Treasuries prices gained on Friday as investors waited on a speech by Federal Reserve Chair Janet Yellen for any new indications on when the US central bank will next raise interest rates.
Investors are looking for new signals over whether the US central bank is likely to hike rates this year, and if an increase is on the table at the Fed's September meeting after other Fed officials including New York Fed President William Dudley said it's a possibility.
"The market is looking for any clear hints or indications that they are going to go later this year, or in September or not September," said Ian Lyngen, an independent Treasuries strategist in New York.
Yellen will speak a 10 a.m. EDT (1400 GMT) at a Fed conference in Jackson Hole, Wyoming.
Yellen may disappoint markets if she offers few new clues on the timing during her speech, and instead focuses more on theoretical discussions as is often the case at the Jackson Hole conference.
"It's Jackson hole, it tends to be bigger picture, broader thematic issues that are going on with the Fed, not a opportunity to communicate the next policy move," Lyngen said.
Cleveland Fed President Loretta Mester said on Friday that the US Federal Reserve should hike rates again so as not to fall behind in a strengthening economy.
Benchmark 10-year notes rose 7/32 in price to yield 1.55 percent, down from 1.58 percent late on Thursday.
Bonds were unchanged earlier on Friday after data showed that US economic growth was a bit more sluggish than initially thought in the second quarter as businesses aggressively ran down inventories of unsold goods, offsetting a spurt in consumer spending.
Gross domestic product expanded at a 1.1 percent annual rate, the Commerce Department said on Friday in its second estimate of GDP. That was slightly down from the 1.2 percent rate reported last month.
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