US Treasurys rise after Fed stands pat

Washington (Jun 16)  U.S. sovereign bond prices were trading higher Thursday after the Federal Reserve stood pat on interest rates but indicated it could still hike rates later this year.

The yield on the 10-year Treasury note, which moves inversely to its price, moved lower to 1.5644 percent, while the yield on the 30-year Treasury bond was down at 2.3972 percent. Two-year notes yielded 0.6774 percent.
 
Federal Reserve officials held interest rates steady at 0.5 percent Wednesday, amid worries about job growth after non-farm payrolls figures for May came in lower than expected.

On the data front, May consumer inflation figures are set to be released at 8:30 a.m. ET, with consensus forecasts indicating a 0.3 percent rise versus a 0.4 percent rise in April.

Also at 8:30 a.m. ET, the U.S. Labor Department will release jobless claims for the week ending June 11, which are expected to come in at 268,000 versus 264,000 a week earlier.

The Philadelphia Federal Reserve survey is also due out at 8:30 a.m. ET.

The National Association of Home Builders (NAHB) survey for June is due out at 10:00 a.m. ET, and is expected to come in slightly higher than May's 58 at a reading of 59.

No major Treasury auctions are expected.

Source: CNBC