U.S. government debt prices slid lower Friday, when markets responded to Federal Reserve Chairman Jerome Powell’s announcement of a major policy shift when it comes to inflation.
The yield on the benchmark 10-year Treasury note rose to 0.7638%, while the yield on the 30-year Treasury bond peaked higher to 1.5369. Bond yields move inversely to prices.
It comes after Powell said Friday that the US Federal Reserve is ready to let inflation run hotter than normal, in an effort to support the labor market and broader economy. He described it as a “robust update” of policy.
This means that the Fed will allow inflation to run “moderately” above its 2% target “for a while” after periods when it has fallen below that level.
On the data front, personal income and spending figures are due at 1:30 p.m. ET, along with wholesale inventories. Data on consumer sentiment is expected at 3:00 p.m. ET.
Investors will also be speaking at the Jackson Hole Economic Policy Symposium, which is being held online.
No Treasury auction is scheduled for Friday.
CNBC’s Jeff Cox contributed to this report.
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