TREASURIES -US yields retreat from highs; data supports Fed patience

BY Reuters | ECONOMIC | 03/19/26 08:59 AM EDT

NEW YORK, March 19 (Reuters) - U.S. Treasury yields eased back from their highs on Thursday, paring their earlier increase that appeared driven by technical factors, even as fresh data pointed to labor market resilience and improving manufacturing activity in the U.S. Northeast.

The releases supported the view that the Federal Reserve can afford to be patient before restarting its rate-cutting cycle.

In morning trading, the two-year yield, which reflects interest rate expectations, was last up 14.7 basis points (bps) at 3.889%, while the benchmark 10-year yield rose 4.7 bps 4.304%. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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