Treasuries Rise on Fed's Inflation Guidance

Treasuries rose in value after Federal Reserve Governor Christopher Waller indicated that he would be inclined to leave interest rates unchanged as long as inflation continues to slow.

This rally on Thursday resulted in trimmed yields across various maturities, led by the two-year Treasury yield, which is more sensitive to Fed rate changes than longer-dated tenors.

The two-year yield declined to about 4.34%, down from a high of 4.40% this week, when it surpassed its level since January 2025 in anticipation of a potential Fed rate increase this month.