Treasuries Move Lower As Fed Governor Barr Favors 'Cautious' Approach To Rates

(RTTNews) - Treasuries fluctuated over the course of the trading session on Thursday before eventually ending the day modestly lower.

Bond prices moved to the downside on the day after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.9 basis points to 4.148 percent.

The weakness among treasuries may have reflected concerns about the outlook for interest rates after Federal Reserve Governor Michael Barr said the central bank should move "cautiously" due to considerable uncertainty about the future course of the economy.

"If we see inflation moving further away from our target, then it may be necessary to keep policy at least modestly restrictive for longer," Barr said during remarks at an Economic Club of Minnesota Luncheon

"If we see heightened risks in the labor market, then we may need to move more quickly to ease policy," he added. "The FOMC can, and I believe would, act forcefully to stabilize the economy if necessary."

Fed Chair Jerome Powell also delivered welcoming remarks at a Community Bank Conference but did not provide any insight into the outlook for interest rates.

However, a lack of major U.S. economic data may have kept some traders on the sidelines, as the ongoing U.S. government shutdown continues to indefinitely delay the release of key reports.

The Labor Department was due to share its report on weekly jobless claims this morning, but the release has been delayed as the shutdown enters its ninth day.

Trading on Friday may be impacted by reaction to the University of Michigan's preliminary readings on consumer sentiment and inflation expectations in the month of October.