US government interest rates withdrew on Friday as a volatile week, in which central banks around the world signaled a more aggressive effort to curb rising inflation, came to an end.
At 05:27 ET, the return on the benchmark index for 10-year government bonds was 9 basis points lower at 3.214%, while the return on the 30-year government bond also fell 9 basis points to 3.271%. The yield moves in reverse to prices. The 2-year interest rate, which is typically more sensitive to changes in monetary policy, was flat at 3.1[ads1]64%.
The S&P 500 is heading for sharp weekly losses as investors flee risk assets amid fears that a stronger tightening of monetary policy could tip the US economy into recession. Some investors sold shares and forced bonds on Thursday, driving up treasury prices and reducing returns.
On Wednesday, the Federal Reserve raised its reference rate by 75 basis points, the largest increase since 1994, with annual US inflation at 8.6% in May for 40 years.
Members of the Federal Open Market Committee reiterated the Fed’s commitment to stabilize inflation and indicated that a stronger path for interest rate increases is ahead of us. Officials also cut their economic growth prospects for 2022 to just 1.7% from 2.8%.
The Swiss National Bank then surprised the markets with its first interest rate hike in 15 years on Thursday, while the Bank of England implemented its fifth straight hike.
Friday is a relatively easy day for economic data, with industrial production data for May coming before the opening clock.