U.S. government debt yields posted weekly losses Friday after many investors took the Federal Reserve policy announcement earlier in the week as a sign the central bank could cut rates in the coming months.
Though yields rose on the week’s final day of trading, the yield on the benchmark 10-year Treasury note posted a 4-basis-point decline for the week as it hovered around 2.06%. The 10-year yield fell below 2% for the first time since 2016 on Thursday.
The 2-year Treasury note yield rose slightly on Friday to about 1.76%.
Bond yields, which move inversely to price, have been under pressure since Fed struck a dovish tone in its June policy statement on Wednesday. At the time, Chair Jerome Powell said that the case for looser policy had improved.
“Overall, our policy discussion focused on the appropriate response to the uncertain environment,” he said. “Many participants now see the case for somewhat more accommodative policy has strengthened,” he said.
The policymaking committee of the Fed also dropped “patient” from its statement and acknowledged that inflation is “running below” its 2% objective.