U.S. Treasury yields rose on Thursday as investors considered the outlook for interest rates after the Federal Reserve's latest interest rate decision and a stronger-than-expected GDP report.
The 10-year U.S. Treasury yield rose above the key 4% level. It rose more than 15 basis points to 4.006%. The 2-year Treasury yield jumped more than 10 basis points to 4.931%.
Bond yields move opposite of price, and a basis point is equal to 0.01 percentage points.
Yields extended their morning gains after the Commerce Department reported that gross domestic product product grew at a 2.4% annualized rate in the second quarter. Economists surveyed by Dow Jones had estimated 2.0% growth.
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The strong economic reading could be seen as a sign that the Fed can keep hiking, though the report also showed softening prices that seem to support the recent drop in inflation readings.
The GDP report comes a day after the Fed announced a further 25 basis point rate hike.
In a press conference on Wednesday, Powell said there was a possibility of both further rate hikes and holding rates at the current level when policymakers next meet in September. He added that these decisions would continue to be data-dependent.
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"We're going to be making careful assessments, as I said, meeting by meeting," Powell said.
Many investors have been hoping that the Fed will end its rate-hiking campaign soon as concerns about elevated rates leading the U.S. economy into a recession have taken hold.
The central bank chief on Wednesday also addressed the outlook for inflation, indicating that despite easing pressures from rising prices, there's still "a long way to go" before inflation returns to the Fed's 2% target.
The last consumer price index print came in at 3% on an annual basis. Investors will get fresh insights on Friday, when the personal consumption expenditures price index for June is due.