U.S. Treasury yields ticked lower Friday after rising to multiyear highs as investors digested comments by Federal Reserve Chairman Jerome Powell.
The yield on the 10-year Treasury fell to 4.939% by 5:25 a.m. ET, down around 5 basis points. The 2-year Treasury yield was trading around 5.155%, down around 2 basis points.
On Thursday, the 10-year Treasury yield topped 5% for the first time since July 20, 2007.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Federal Reserve Chairman Jerome Powell on Thursday warned that lower economic growth was likely needed to bring down stubbornly high inflation, and gave no indication that a rate hike is on the cards.
“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said at the Economic Club of New York. “We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.”
He added, “Does it feel like policy is too tight right now? I would have to say no.”
The Fed’s Lorie Logan, Patrick Harker and Loretta Mester are also all due to speak Friday. No major data points or Treasury auctions are scheduled.
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— CNBC’s Jeff Cox contributed to this report