US Treasury yields tick higher amid hopes of a Fed rate cut

U.S. government debt prices were lower on Friday morning, after comments from a Fed official hinted at a rate cut.

At around 02:00 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.0500%, while the yield on the 30-year Treasury bond was also higher at around 2.5756%.

New York Federal Reserve President John Williams said Thursday that the central bank should “act quickly” when the economy loses some steam. “It’s better to take preventative measures than to wait for disaster to unfold,” he said in a speech.

His comments sparked further expectations of a rate cut this month when the Federal Reserve meets. However, a New York Fed spokeswoman cautioned against reading too much into the comments. “This was an academic speech on 20 years of research. It was not about potential policy actions at the upcoming FOMC meeting,” a spokesperson for the New York Federal Reserve told CNBC.

On the data front, the calendar is thin with only July pre-Consumer sentiment numbers due at 10:00 a.m. ET.

Elsewhere, Boston Fed President Eric Rosengren will speak at 4:30 p.m. ET and St. Louis Fed President James Bullard will attend a panel discussion at 11:10 a.m. ET.

Meanwhile, the Treasury has no auctions scheduled.