A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell on March 5, 2025, in New York City.
The 10-year Treasury yield ticked higher on Friday amid ongoing uncertainty looming over the U.S. economy and inflation levels as President Donald Trump presses ahead with his tariff campaign.
The benchmark 10-year Treasury note yield rose more than 1 basis point to 4.25%, while the 2-year Treasury yield was less than 1 basis point lower at 3.95%.
One basis point is equal to 0.01%. Yields and prices have an inverted relationship.
Investors are mulling over the outlook for the future of the U.S. economy amid U.S. tariff impositions and rollbacks, with the Federal Reserve holding interest rates earlier this week, given ongoing uncertainty.
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The Federal Open Market Committee left its key borrowing rate targeted in a range between 4.25% to 4.5%, in a widely expected move.
Fed officials also outlined their projections for the year ahead and said they expect another combined half-percentage point of rate cuts in 2025. The Fed prefers to move in quarter-percentage-point increments, meaning two reductions could take place this year.
Fed Chair Jerome Powell also noted that Trump's tariffs — imposed on global trade partners — may lengthen the process of getting to price stability. "I do think with the arrival of the tariff inflation, further progress may be delayed," Powell said at a press conference after the decision.
Money Report
Trump's tariffs on global trade partners have sparked concerns about the possibility of a recession amid slowing economic growth.
Investors can expect a flurry of economic data in the week ahead, including insights on existing home sales, mortgage lending rates, GDP growth and the personal consumption expenditures index on Friday.
