Traders work on the floor of the New York Stock Exchange.
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U.S. Treasury yields rose on Friday as investors focused on the economic outlook and geopolitical concerns.
The benchmark 10-year Treasury yield rose more than 5 basis points to 4.217%. The two-year government bond yield rose 3 basis points to 3.594%. The yield on the 30-year US Treasury note also rose by more than 4 basis points to 4.828%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Investors have been concerned about geopolitical uncertainty throughout this week, with President Donald Trump insisting on taking ownership of the autonomous Danish territory of Greenland, citing its importance to U.S. national security. The president on Friday threatened to impose tariffs on countries “if we do not cooperate with Greenland.”
A high-stakes meeting between the United States, Denmark and Greenland on Wednesday over the future of the Arctic island ended without a diplomatic solution, but talks are expected to continue.
Meanwhile, tensions between the United States and Iran eased after President Trump indicated he would refrain from military strikes, citing reports that Iran had scaled back its violent crackdown on demonstrators.
Also this week, a criminal investigation into Federal Reserve Chairman Jerome Powell has raised concerns about the Fed’s independence and political influence. President Trump said Friday that he wants to keep Kevin Hassett, chairman of the National Economic Council, in office, raising market expectations that former Fed director Kevin Warsh will become the next Fed chairman.
Despite a quiet period on the economic data front, investors are keeping an eye on next week when the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditure Index, is released and will provide new insight into the economy.
The bond market will be closed on Monday in observance of Martin Luther King Day.
