Treasury yields rose on Friday amid concerns about the possibility of higher inflation.
The yield on the 10-year Treasury note rose to 1.34% around 3:45 p.m. ET, while the yield on 30-year Treasury bonds rose to 2.14%. Yields are reversed to prices.
Treasury Secretary Janet Yellen told CNBC on Thursday that she still believes President Joe Biden’s stimulus package is $ 1.9 trillion to revive the U.S. economy.
“We think it ‘s very important to have a great package [that] it addresses the pain that this has caused: 15 million Americans with their rent, 24 million adults and 12 million children who do not have enough food, small businesses fail, ”said Yellen.
He said his support for the package despite indications that momentum is increasing in the first two months of 2021 and that investor fears could inflate again.
“Inflation has been very low for over a decade and you know it’s a risk, but it’s a risk that the Federal Reserve and others have the tools to address,” he said. “The biggest risk is that people can get scarred, as this pandemic will have to last a lifetime and livelihood.”
The Treasury Secretary also said the proposed future tax increases to help offset the cost of infrastructure and Biden’s investment plans, scheduled for later this year, will be gradually incorporated.
Yields tend to increase with inflation expectations as bond investors begin to believe that central banks will withdraw gas and reduce asset purchases.
No Friday auctions are scheduled.
– CNBC’s Tom Franck and Elliot Smith contributed to this report.