Copyright CNBC
U.S. Treasury yields ticked up on Friday amid a slightly more hawkish Fed tone following this week's rate cut, as economic data comes into focus amid the ongoing government shutdown. The 10-year Treasury yield, the benchmark for U.S. government borrowing, was up about 1 basis point at 6:10 a.m. ET, reaching 4.103%. Yields on the 2-year Treasury note stood marginally lower, at 3.607%. The 30-year bond yield, meanwhile, rose almost 2 basis points to 4.665%. One basis point equals 0.01% and yields and prices move in opposite directions. The Federal Reserve cut interest rates by 25 basis points to a target range of 3.75%-4%. — the lowest level in three years — in a 10-2 vote which had been widely anticipated by investors. Attention is likely to turn to the latest Chicago Purchasing Managers' Index data, due later. Consensus expectations for the data, which tracks the pace of business activity in the Midwest, stands at 42 for the month of October, above the 40.6 in September's release, which had been below market expectations. The four-week-old government shutdown means the U.S. central bank is still grappling with a data blackout, making economic forecasts tricky. That is putting companies' earnings firmly in the spotlight, as investors look to get a better reading on consumer sentiment. Both Apple and Amazon exceeded analysts' expectations in their quarterly earnings results on Thursday. Speeches by Beth Hammack, president of the Cleveland Fed, Lorie Logan president of the Dallas Fed, and Raphael Bostic, president of Atlanta's Fed, are all due later. Fed Chairman Jerome Powell has warned that another rate cut in December is "far from" a "foregone conclusion."
