U.S. government debt prices slipped lower early Friday, as markets responded to Federal Reserve Chairman Jerome Powell’s announcement of a major policy shift when it comes to inflation.
The yield on the benchmark 10-year Treasury note rose to 0.7638%, while the yield on the 30-year Treasury bond ticked higher to 1.5369. Bond yields move inversely to prices.
It comes after Powell said Friday that the U.S. central bank is willing to allow inflation to run hotter than normal, in an effort to support the labor market and broader economy. He described it as a “robust updating” of policy.
It means the Fed will allow inflation to run “moderately” above its 2% goal “for some time” after periods when it has fallen below that level.
On the data front, personal income and spending figures are due at 1:30 p.m. ET, along with wholesale inventories. Consumer sentiment data are expected at 3:00 p.m. ET.
Investors will also be watching speakers at the Jackson Hole Economic Policy Symposium, which is being held online.
No Treasury auctions are scheduled Friday.
CNBC’s Jeff Cox contributed to this report.