NEW YORK: US Treasury prices rose on Thursday as markets rebounded from Wednesday's selloff ahead of remarks by New York Fed President William Dudley that could reinforce the possibility of interest rates being raised at the next Fed policy meeting.
U.S. Treasury yields, which move in the opposite direction of prices, rose to their highest in about two months for shorter-dated maturities after the Fed's April 26-27 meeting minutes were released late Wednesday. In the minutes, U.S. Fed officials said they were open to a rate hike in June if the economy continues to improve.
Prices moved higher in early trading as markets got limited commentary from Fed Vice Chair Stanley Fischer and awaited comments from Dudley after Wednesday's drubbing.
"After such a strong move there are a lot of investors trying to get their bearings on where things go next," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York.
"We'll see whether Dudley actually lets the higher pricing for June stand or whether he tries to lean against, but it's tough for investors to see where the next move in rates is going without seeing what the remarks from Dudley will be."
Dudley is considered by many investors to be among the most important voices on the Fed's Federal Open Market Committee that sets U.S. overnight interest rates. He is set to speak at a New York Fed event at 10:30 a.m. ET (1430 GMT).
Two-year Treasury notes rose 2/32 in price to yield 0.88 percent. Yields on the two-year note rose to as high as 0.92 percent in earlier trading, a two-month high.
Benchmark 10-year notes rose 11/32 in price to yield 1.84 percent.
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