Traders work on the floor of the New York Stock Exchange during morning trading on May 31, 2024 in New York City.
U.S. Treasury yields were higher on Wednesday as investors considered the latest comments from Federal Reserve officials about monetary policy and awaited key economic data.
At 4:03 p.m. ET, the yield on the 10-year Treasury was up nearly 8 basis points at 4.316%. The 2-year Treasury yield was last at 4.743% after rising 5 basis points.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Investors digested remarks from Federal Reserve officials about the U.S. economy and the outlook for interest rates.
Fed Governor Michelle Bowman on Tuesday said the central bank was not ready to cut rates, saying this would only be "appropriate" when data showed that inflation is sustainably easing toward the Fed's 2% target.
Bowman also did not take further interest rate hikes off the table.
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"I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse," she said.
Money Report
Meanwhile, Fed Governor Lisa Cook on Tuesday said she only expects little change to inflation rates this year, but sees inflation "slowing more sharply" next year.
Investors also looked ahead to key economic data due later in the week, including the personal consumption expenditures price index on Friday. The PCE is the Fed's favored inflation gauge and could therefore inform policymakers' thinking on expectations for the economy and the timeline for potential interest rate cuts.
New home sales declined more than 11% on a monthly basis in May, the Commerce Department reported Wednesday. The median sales price also ticked downward.
Correction: New home sales fell more than 11% on a monthly basis in May. A previous version misstated the month.
