NEW YORK: Treasury yields rose on Friday ahead of the Federal Reserve's policy-setting meeting next week, which will provide clues on the strength of the US recovery and when the central bank might start to curb its economic support.
The yield on 10-year Treasury notes hovered just below 1.3%, or almost 17 basis points higher than a five-month low set Tuesday, but still at the low end of a recent range.
The benchmark note traded up 2.1 basis points at 1.288% after briefly rising above 1.3%. The yield on the 30-year Treasury bond rose 2.2 basis points to 1.925%.
The Treasury market has gone from oversold to overbought and is seeking equilibrium as fears ebb that the COVID-19 Delta variant would lead to lockdowns and slow the economy, said Steven Ricchiuto, US chief economist at Mizuho Securities.